According to data from Hamptons, the amount private tenants spent on rent jumped by a record 11.8% in 2022 in England and Wales. It also showed that from 2011 to 2021 the number of households privately renting increased by 151,800 in the 10% most deprived areas of England and Wales, compared to only an 80,000 rise in the 10% least deprived areas.
On record, private tenants spent a record £71.5 billion on rent throughout 2022. This is an increase from £63.9bn in 2021 and an even bigger increase from £42.8bn in 2012.
The total number of households privately renting has grown by 1.12m over the last decade according to the data.
This means that 23% of households in the poorest 10% of the country rent privately, up from 18% a decade ago, well above the 13% that rent in the most affluent areas. The total amount of rent paid by tenants in the 10% most deprived areas has more than doubled over the last decade, increasing 102% from £2.7bn in 2012 to £5.4bn last year.
Last year, the average rent on a newly-let home in the UK ended the year at £1,216 per calendar month in December, 7.7% up on the same period a year ago.
Hamptons head of research Aneisha Beveridge says: “Growth in the private rented sector over the last decade has come on the back of fewer younger people buying their own home, particularly in the less affluent areas. While tighter mortgage lending criteria introduced following the financial crash has reduced the number of borrowers struggling to make their mortgage payments, it has also put homeownership beyond reach for some people on below-average incomes with small deposits. While we may see the rate of growth soften a little more in the coming months, rents are still likely to rise around 5% in 2023 given the lack of homes available to rent and inflationary pressures on landlords.”
Here at Mortgagez, our team of fully qualified mortgage advisers is on hand to help you every step of the way in obtaining a new mortgage and our service won’t cost you a penny when you go via our online portal. Visit our website today and obtain a quick quote to see how much you could save on your next mortgage.
I want to remortgage → Mortgagez | Remortgage Calculator
I want to buy a home → Mortgagez | Instant Online Mortgage Calculator
PLEASE NOTE: Article written 16th January 2023. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: January 2023 160123 MZ000263
