Index Of Private Housing Rental Prices UK Show Increase - September 2022

19th October 2022

Private rental prices paid by tenants in the UK rose by 3.6% in the 12 months to September 2022, up from 3.4% in the 12 months to August 2022.

Private rental prices grew by 3.6% in England, 2.7% in Wales and 3.9% in Scotland in the 12 months to September 2022.

The East Midlands saw the highest annual growth in private rental prices (4.7%), while London saw the lowest (2.8%).

Private rental prices paid by tenants in the UK increased by 3.6% in the 12 months to September 2022, representing the largest annual growth rate since this series began in January 2016.

Growth in private rental prices paid by tenants in the UK remained steady between November 2019 and the end of 2020. Rental price growth slowed in early 2021, which was driven by the slowdown, and later reduction, of London rental prices. This may have reflected lower demand in London because of the coronavirus (COVID-19) pandemic. For example, remote working meant workers no longer needed to live close to offices and housing preferences changed. Private rental price growth in the UK increased in late 2021, with widespread annual growth across all regions, except London where prices decreased. Private rental price annual growth has increased across all regions in 2022, including in London, where annual growth has accelerated.

In the 12 months to September 2022, rental prices for the UK excluding London increased by 4.0%, up from an increase of 3.9% in August 2022. Private rental prices in London increased by 2.8% in the 12 months to September 2022, up from an increase of 2.5% in August 2022. This is the strongest annual growth in London since July 2016. Despite this, London's rental price growth in September 2022 remains the lowest of all English regions.

The Association of Residential Letting Agents (ARLA) reported in their Private rented sector report, July 2022 that the demand for properties continues to increase, as do rental prices. The number of tenants renewing their tenancies is also increasing, as many prefer to stay put rather than move.

The Royal Institution of Chartered Surveyors (RICS') UK Residential Market Survey - August 2022 (PDF, 4.80MB) reported an increase in tenant demand in August. Given the excess of demand over supply, rental prices are expected to rise further.

These supply and demand pressures can take time to feed through to the Index of Private Housing Rental Prices (IPHRP), which reflects price changes for all private rental properties rather than only newly advertised rental properties.

UK private rental growth rates by country
In England, private rental prices grew by 3.6% in the 12 months to September 2022, representing the highest annual growth rate since June 2008. When London is excluded from England, private rental prices increased by 4.0% in the 12 months to September 2022. This is up from an increase of 3.9% in August 2022, and the highest annual growth rate since this series began in 2006.

Private rental prices in Wales grew by 2.7% in the 12 months to September 2022. This is up from an increase of 2.5% in August 2022, and is the highest annual growth rate since this series began in 2010.

Private rental prices in Scotland grew by 3.9% in the 12 months to September 2022. This is up from an increase of 3.6% in August 2022, and is the highest annual growth rate since this series began in 2012.

The annual growth rate for Northern Ireland in September 2022 (8.4%) was higher than the other countries of the UK. The Northern Ireland data have been carried forward since June 2022. The Northern Ireland data will be updated in our Index of Private Housing Rental Prices, UK bulletin published on 16 November 2022.

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