In just 12 months, the average UK tenant could be paying £800 more a year in rent, according to the latest research by Ocasa, the rental platform specialising in affordable homes that don’t compromise on quality.
Following a turbulent pandemic period, the UK rental market is back on track and the analysis of rental market values by Ocasa shows that the average UK tenant is now paying £12,936 per year for a rental property.
This annual cost of renting has already climbed by £1,032 since this time last year and Ocasa predicts that it could increase by a further £803 over the next 12 months. This means the average tenant would be required to pay £13,739 a year to rent a home.
London remains by far the least affordable region of the UK rental market, with the average tenant currently paying £21,140 per year. Ocasa also estimates that the capital’s tenants will see this cost increase by a further £1,140 per year over the next 12 months.
But while London renters are paying the highest price to rent, it’s those in the North West that could see the sharpest increase between the current cost of renting and the cost required in 12 months time.
On average, tenants in the North West currently pay £10,452 per year in rent. However, Ocasa predicts that this cost could be set to increase by £1,504 by next year.
The East of England could be set to see the third largest hike in the annual cost of renting, climbing by a further £898 to a total of £13,426 per year.
In the South West, this increase in annual rental costs is estimated to hit £790, while Ocasa also estimates that renters in the South East (£750) and East Midlands (£717) will be required to pay over £700 more a year in rent.
While those in the North East stand to see the lowest increase in the cost of renting, Ocasa predicts that the average annual cost of renting in the region could still climb by £617 in just 12 months’ time.
“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.
When you add an increase in rental costs to this mix, it paints a very bleak picture for the year ahead.”