image source, Delia-Ioana/BBC News
- Author, Alix Hattenstone, Miguel Roca-Terry and Jonathan Fagg
- Role, BBC England Data Unit
The average cost of a private rental in England has risen by almost a quarter since the last general election.
In December 2019, rents cost an average of £1,064 per month, according to the Office for National Statistics (ONS). This has risen by 22% to £1,301 by May 2024 for new and existing tenancies.
Tenants told the BBC they settled for moldy properties, couch-surfed or moved back in with relatives.
The National Residential Landlords Association has blamed a “chronic shortage” of private rental homes for high interest rates that have driven landlords out of the market.
“All of us were homeless”
Delia-Ioana, a 24-year-old freelance production assistant, pays £567 a month for a flat in Bristol.
She said it took eight months to fix a leaking faucet, which affected her water bills, and the walls were moldy and damp with mineral deposits.
Delia-Ioana plans to move out soon, but said rent is often too expensive and she was worried about the future.
“I looked at my friends – we’ve all been homeless at one point or another. A floor here, a couch there,” she said.
“How can we afford to have children if we can’t afford a house?”
Average rents in Bristol rose by 34% from December 2019 to May 2024, from £1,312 to £1,759 per month, the eighth biggest increase among local authorities in England.
image source, Delia Ioana/BBC
How has rent changed in your area?
Why did the rent go up?
Between December 2019 and May 2024, the average private rent in England rose by 22%, according to the Office for National Statistics (ONS).
It used a “geometric mean” to account for differences in property types and changes in rental markets.
Over a similar period (April 2019 to April 2024), the Institute for Fiscal Studies estimated UK profits to be 4-6% in real terms.
The Bank of England started raising interest rates in December 2021, pushing up mortgages. Since last summer, it has kept them at 5.25% with the aim of slowing the rate of price growth.
Richard Donnell, executive head of research at property company Zoopla, said these increases had made it harder for potential first-time buyers.
According to Mr Donnell, there are fewer private landlords, which means that the total number of rented homes in the UK has barely changed since 2016 – but demand continues to rise.
“The big increase in demand came after the pandemic ended and the economy reopened,” he said.
“You’ve had such a big return of people to the cities, international borders have reopened.”
He said the growth of home working has made cheaper areas outside the big cities more attractive.
Where did the rent increase the most?
London has the highest average rent in England. However, Tameside in Greater Manchester saw the biggest percentage increase, up more than 40% – from £555 in December 2019 to £780 in May 2024.
Greater Manchester’s six local authorities were among the areas with the biggest percentage increases in England.
“It was like a bidding war”
Luisa, a civil servant who rents in Tameside, lived in a £695-a-month three-bedroom house with her two grown-up children in 2022.
On September 25 of the same year, its owner sent her a letter that he was selling the property. He cited government decisions, rising interest rates, rising insurance and legislation that he said treated landlords unfairly.
Two days earlier, Prime Minister Liz Truss’ chancellor Kwasi Kwarteng shared a “mini budget” designed to stimulate economic growth.
This included £45bn of unfunded tax cuts – now mostly reversed. Subsequently, inflation and interest rates increased.
A Lib Dem spokesman blamed “Liz Truss’s botched budget” for “raising rents for tenants” and a Labor spokesman said “the Tories have failed time and again to build tenants”.
A spokesman for the Conservative Party said: “Covid and the war in Ukraine have increased inflation and put pressure on tenants, but we have brought inflation back to normal”, adding that they are committed to creating a fairer market for tenants.
Luisa spent four months looking for a place to live.
“People were offering an upfront asking price or six months’ rent. I was in no position to do that,” she said.
“It was like a bidding war — I showed up and there was a block watch with about eight to 10 different people.
Luisa rented the sixth house she was looking at for £900 a month.
She said: “I feel sorry for my children because my daughter is 20 and my son is 26 at university – they have to help me with the rent. He is not able to save for his future.”
How does your area compare to the rest of England?
What are the various parties promising in terms of rent?
- conservatives: Build 1.6 million homes over five years, introduce new Help to Buy scheme requiring 5% deposit and stamp duty for properties up to £425,000
- Work: Help build 1.5 million homes over five years, introduce a permanent mortgage guarantee scheme to help first-time buyers and end rental bid wars. Extend protection around moisture, mold and cold.
- Liberal Democrats: Build 380,000 homes a year and default to three-year leases
- UK reform: Favor local people and those who have paid social housing into the system and encourage more people to become landlords by removing some taxes
- Green Party: Create 150,000 new social homes a year, introduce rent controls and bring empty homes back into use
Before the general election was called, the Tenancy (Reform) Act, which would have prohibited landlords from evicting tenants without reason, had not been passed.
The Conservatives, Labour, Lib Dems and the Green Party have pledged to end no-fault evictions if elected.
Reform UK wants to scrap the Tenancy Reform Act and says it will strengthen “monitoring, appeals and the enforcement process for tenants with complaints”.