Rents could rise by £1,500 next year in market boom

The rental market’s recovery from the pandemic could see some UK tenants pay around £1,500 more per year in rent next year, according to data published by rental platform Ocasa.

Their published forecast predicts that the average UK tenant could pay as much as £803 more a year in rent within the next 12 months. Currently the average UK tenant is paying £12,936 per year, which is a rise of £1,032 since this time last year. If Ocasa’s forecast is correct, then the average tenant’s annual rent total will reach £13,739.

Tenants in the North West are those facing the largest increase of £1,504, with the yearly rent total currently at £10,452. Tenants in the East of England could see a significantly lower rise of £898 per year. Tenants in the South East and the East Midlands could see rises of over £700 per year, while those in the South West could experience a yearly rise of £790. The lowest rise is expected to be in the North East, where annual rents could increase by £617 within the next 12 months.

The yearly rent rise in London is forecasted to be £1,140 by Ocasa, with tenants in the capital already paying £21,140 per year in rental fees.

An Ocasa spokesperson explained: “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 this will be particularly concerning for those residing within the sector.

“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.”

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