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The Index of Private Housing Rent Prices (IPHRP) announced recently, shows a three<br>percent surge in private rental prices in the UK. This calculation takes into account the<br>12 months ending June 2022. According to the Office for National Statistics, this is the<br>largest annual growth rate since 2016. Last year, there was a 2.9 percent increase<br>in private rental prices in England. It was lower at 1.9 percent in Wales and 3.5 percent<br>in Scotland in the past year. Rent hike was the lowest at 1.7 percent in London and the<br>highest at 4.3 percent in the East Midlands.<br>Supply Shortage
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What will a 2022-23 Recession Mean For UK Renters? The Index of Private Housing Rent Prices (IPHRP) announced recently, shows a three percent surge in private rental prices in the UK. This calculation takes into account the 12 months ending June 2022. According to the Office for National Statistics, this is the largest annual growth rate since 2016. Last year, there was a 2.9 percent increase in private rental prices in England. It was lower at 1.9 percent in Wales and 3.5 percent in Scotland in the past year. Rent hike was the lowest at 1.7 percent in London and the highest at 4.3 percent in the East Midlands. Supply Shortage Is a Long-Standing Problem UK leading property experts believe the rent spike is due to a prevailing supply shortage. Our Ian Barber – Head of UK BTR & Lettings confirms that in Ringley’s experience that the lack of available homes is leading to bidding wars and resulting in a surge in rents and deposits. However, rising interest rates and a potential recession may slow down the pace of price growth over the following months. With inflation shooting up, rising interest rates, and a potential recession, demand for rented homes is likely to be severely impacted. Lenders are understandably becoming ever more cautious, restricting how much people can borrow. Service Charge Sorted
