Image source, Delia-Ioana/BBC News
- Author, Alix Hattenstone, Miguel Roca-Terry and Jonathan Fagg
- Role, BBC England Data Unit
The average cost of private renting in England has risen by almost a quarter since the last general election.
According to the Office for National Statistics (ONS), rent cost an average of £1,064 per month in December 2019. By May 2024, this had risen by 22% to £1,301 for new and existing tenancies.
Tenants have told the BBC they have made do with moldy properties, couch surfed or moved back in with family.
The National Residential Landlords Association has blamed a “chronic shortage” of private rental housing on high interest rates, which are driving landlords out of the market.
‘We’ve all been homeless’
Delia-Ioana, a 24-year-old freelance production assistant, pays £567 a month for a fixed share in Bristol.
She said it took eight months to repair a leaking faucet, which affected her water bill. Also, the walls were moldy and damp from mineral deposits.
Delia-Ioana wants to move soon, but says the rent is often too expensive and she worries about the future.
“I looked at my friends – we’ve all been homeless before. 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% between December 2019 and May 2024, from £1,312 to £1,759 per month. This is the eighth largest increase among local authorities in England.
Image source, Delia Ioana/BBC
How has rent changed in your area?
Why has the rent increased?
According to the Office for National Statistics (ONS), the average private rent in England increased by 22% between December 2019 and May 2024.
A ‘geometric mean’ was used to take into account differences in housing types and changes in the rental market.
The Institute for Fiscal Studies estimated that UK income rose by 4-6% in real terms over a similar period (April 2019 to April 2024).
The Bank of England began raising interest rates in December 2021, causing mortgages to rise. Since last summer, the Bank has kept interest rates at 5.25%, aiming to slow the pace of price increases.
Richard Donnell, executive head of research at property company Zoopla, says these increases have made it harder for potential first-time buyers.
According to Mr Donnell, there are fewer private landlords, meaning the total number of rental properties in Britain has hardly changed since 2016 – but demand has continued to rise.
“The big increase in demand happened after the pandemic ended and the economy reopened,” he said.
“You had a big return of people to cities, international borders reopened.”
He said the growth of home working has made cheaper areas outside the big cities more attractive.
Where have rents risen the most?
London has the highest average rent in England. But Tameside in Greater Manchester saw the biggest percentage increase, by more than 40% – from £555 in December 2019 to £780 in May 2024.
Six local authorities in Greater Manchester were among the areas with the largest percentage increases in England.
‘It was like a bidding war’
Luisa, a civil servant who rents in Tameside, lived in a three-bedroom house with her two adult children for £695 a month in 2022.
On September 25 of that year, her landlord sent her a letter saying he was going to sell the property. He cited government decisions, rate hikes, rising insurance and legislation that he said was unfair to landlords.
Two days earlier, then-Chancellor Kwasi Kwarteng shared with Prime Minister Liz Truss a ‘mini-budget’ designed to boost economic growth.
This included £45bn of unfunded tax cuts – now largely reversed. After this, inflation and interest rates rose.
A Liberal Democrat spokesman accused “Liz Truss’ failed budget” of “driving up rents for tenants” and a Labour spokesman said “time and time again the Tories have failed to stand up for tenants”.
A Conservative Party spokesperson said: “Covid and the war in Ukraine have increased inflation and put pressure on renters, but we have brought inflation back to normal levels,” adding that they are committed to creating a fairer market for tenants.
Luisa looked for a place to live for four months.
“People offered more in advance than the asking price or six months’ rent. “I wasn’t in a position to do that,” she said.
“It was like a bidding war: I showed up and there was a block visit with about eight to ten different people there.”
Luisa rented the sixth house she viewed for £900 a month.
She said: “I feel sorry for my children because my daughter is 20 and at university my son is 26 – he has to help me with the rent. He cannot save for his future.”
How does your area compare to the rest of England?
What do the various parties promise about the rent?
- Conservatives: Build 1.6 million homes in five years, introduce new Help to Buy scheme requiring 5% deposit and transfer tax on properties up to £425,000
- Work: Help build 1.5 million homes in five years, introduce a permanent mortgage guarantee scheme to help first-time buyers and put an end to rental bidding wars. Extend protection against moisture, mold and cold.
- Liberal Democrats: Build 380,000 homes per year and make three-year rental contracts the standard
- UK reform: Prioritize local people and those who have contributed to the social housing system, and encourage more people to become landlords by eliminating some taxes
- Green party: Create 150,000 new social housing units per year, introduce rent controls and put vacant homes back into use
The Renters (Reform) Bill, which would have banned landlords from evicting tenants without cause, was not passed before the general election was called.
The Conservatives, Labour, Liberal Democrats and Green Party have all pledged to end no-fault evictions if elected.
Reform UK wants to scrap the Renters Reform Bill, saying they will boost “the monitoring, appeals and enforcement process for tenants with complaints”.