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Rent Surge: 9% Increase Nationwide

Recent insights from SpareRoom, indicate a significant upswing in rental costs across the UK, with an average increase of 9% in the first quarter of 2024 compared to the same timeframe in 2023. The data, drawn from over 300,000 room advertisements, points to Bolton in Greater Manchester as experiencing the most pronounced rise, where average rents have escalated by an astonishing 23% over the past year.

Regional Highlights
The analysis reveals that both the West Midlands and Northern Ireland have faced the steepest regional rent hikes, each with an 11% increase. London, meanwhile, has seen its slowest growth rate since the latter stages of the pandemic, with a 5% rise. Other notable cities include Birmingham, with a 19% jump, Edinburgh at 14%, and Manchester, where rents have increased by 9%. The least affected was Sunderland, with no change, followed closely by Middlesbrough and Dundee, with minimal increases.

Rent Surge: 9% Increase Nationwide Landlord Knowledge

The Driving Forces Behind the Surge
Matt Hutchinson, Director at SpareRoom, sheds light on the ongoing situation: “Despite a cooling in demand and a slight increase in supply, rents continue to rise, which isn’t good news for renters. Things are slowing, but it always seems to be the case that rents go up faster than they come back down.” He suggests that the surge in rents in the West Midlands could be attributed to the HS2 construction project, which has not only created thousands of jobs but promises more in the future, influencing the housing market dynamics.

This comprehensive quarterly rental index from SpareRoom underscores the relentless pressure on the UK rental market, leaving no city or town unaffected by the upward trend in housing costs. As the construction of HS2 bolsters economic activity in certain regions, the ripple effects on rent are becoming increasingly evident, adding another layer of complexity to the UK’s housing crisis.