A rental platform has projected that rising rents in UK could significantly within a year, potentially resulting in an additional £800 per year for the average tenant. After a turbulent period due to the pandemic, the UK rental market has regained stability. According to Ocasa, a rental platform, the average annual rent paid by UK tenants currently stands at £12,936. This figure has already increased by £1,032 compared to the previous year, and Ocasa anticipates a further rise of £803 over the next 12 months. Consequently, tenants could be facing an annual rental cost of £13,739.
London continues to maintain its position as the most unaffordable region in the UK rental market, with tenants currently paying an average of £21,140 per year. According to the platform’s projections, renters in the capital can expect this cost to rise by an additional £1,140 per year over the next 12 months.
However, it is the North West region that is likely to experience the most significant increase in rental costs compared to the current rates. On average, tenants in the North West currently pay £10,452 per year in rent. The platform predicts that this figure could surge by £1,504 by the next year.
The East of England is expected to witness the third-largest hike in annual rental costs, with an estimated increase of £898, bringing the total to £13,426 per year.
In the South West, renters could face an annual rental cost increase of £790. Similarly, the platform estimates that tenants in the South East (£750) and East Midlands (£717) will need to pay over £700 more per year for rent.
While the North East region is projected to have the smallest increase in rental costs, there is still an expected rise of £617 in the average annual rental expense within the next 12 months.
A representative from the platform expresses concerns about the rising rental costs in the UK. Despite the uncertainties caused by the pandemic, tenants are currently paying significantly more compared to a year ago.
The spokesperson further adds that the cost of renting is expected to continue climbing over the next 12 months, which can be particularly worrisome for individuals in the rental sector. Rent already constitutes a substantial portion of their expenses, and recent weeks have seen an additional strain on their finances due to the increasing cost of living.