The Office for National Statistics released figures on the 20th of March and shows that rental prices escalated across all regions of the UK.
In England, average monthly rents surged 8.8% year-on-year, reaching £1,276.
In Scotland, they increased by 10.9% to an average of £944; in Wales, they went up by 9% to £723.
Data for Northern Ireland lags behind, with the ONS reporting a 9.3% rise there over the year to December 2023.
Notably, the steepest rise in England occurred in London, already known for its high rents, with the average monthly cost for tenants escalating by 10.6% year-on-year to £2,035.
Rental prices have been steadily climbing since the inception of the ONS series. Still, the pace of increase has accelerated recently, fueled by higher interest costs and a decline in the availability of rental properties.
The figures for February represent the highest recorded since the ONS began publishing this index, which encompasses new and existing tenancies in England and Wales, newly advertised lets in Northern Ireland, and predominantly new lets in Scotland.
For property investors, this means they may achieve higher gross yields than they would have during the same period last year. Tenant demand remains high, albeit not as high as it was through 2023, so this may be a good time to capitalise on the buy-to-let market’s conditions.
Find Out More: If you’re itching to find out more about property investment, see our guide on what a studio flat is and why you may want to invest in one. Additionally, check out our guide on long-term investments and how to incorporate this thinking into your property investment strategy.
