Private rents forecast to climb by as much as £1,500 in next year

In just 12 months time the average private sector tenant could be paying between £800 and £1,500 more a year in rent, according to research by a rental platform specialising in affordable homes.

Following a turbulent 24 months, the UK rental market is ‘back on track’ and analysis of rental market values by Ocasa shows that the average UK tenant is now paying £12,936 per year for a rental property.

This annual cost of renting has already climbed by £1,032 since this time last year and Ocasa predicts that it could increase by a further £803 over the next 12 months. This means the average tenant would be required to pay £13,739 a year to rent a home.

London remains by far the least affordable region of the UK rental market, with the average tenant in the capital currently paying £21,140 per year. Ocasa estimates that the capital’s tenants will see this cost increase by a further £1,140 per year over the next 12 months.

While London’s renters are paying the highest price to rent, it is those in the North West that could see the sharpest increase with their average rent of £10,452 per year predicted to increase by £1,504 over the next year.

The East of England could be set to see the third largest hike in the annual cost of renting, climbing by a further £898 to a total of £13,426 per year. In the South West, this increase in annual rental costs is estimated to hit £790, while Ocasa also estimates that renters in the South East (£750) and East Midlands (£717) will be required to pay over £700 more a year in rent.

Renters in the North East stand to see the lowest increase in the cost of renting, Ocasa predicts that the average annual cost of renting in the region could still climb by £617 in just 12 months’ time.

A spokesperson for Ocasa said: “Despite a rather unsettled rental market landscape as a result of the pandemic, the average UK tenant is still paying over a thousand pounds more a year versus just 12 months ago. This cost is set to climb even further over the next 12 months and will be particularly concerning for existing tenants.

“Renting is already the most substantial outgoing they face but in recent weeks, many will have also seen their finances squeezed by the increasing cost of living. When you add an increase in rental costs to this mix, it paints a very bleak picture for the year ahead.”

Patrick Mooney, Editor