UK Average Property Rent Up 10% in 2022
Published / Last Updated on 28/01/2023
Rightmove has reported that the average UK residential property rent increased by 9.7% outside London, 16% in Greater London and nearly 17% in central London in 2022.
- Average Rent (outside London) - £1,172 per month.
- Average Rent Greater London - £2,480 per month.
- Average Rent Central London - £3,000 per month.
Reasons for Rental Increases
- Increased purchase prices.
- Increased property expenses and cost of living.
- Buy to let mortgage costs up as interest rates have increased.
- Minimum Energy Performance Certificates (EPC) increasing in 2025 to a C meaning landlords now starting to install better roof, wall and floor insulation, more efficient heating systems, and efficient water heating systems.
- New Fire Safety (England) Regulations came into force in May 2022 following the tragedy at Grenfell Tower meaning Fire Safety Audit Surveys for every building with landlords paying for or planning for significant costs for things like new fire doors and frames, auto-closing fore doors, easy exit door opening locks, intumescent strips, smoke excluders, automatic smoke vent opening fittings in communal areas, fire escape routes, fire/smoke/heat sensor alarms systems etc.
- Landlords facing even higher taxes with higher stamp duty costs, bigger capital gains bills as allowances fall and still reduced tax relief on mortgage and finance costs.
These have all clearly hit landlords hard following the tough lockdown and furlough period with tenants allowed to reduce rental payments/have rental holidays or move into arrears with no fear of eviction. Landlords had to bear those costs with no recompense or compensation.
On the positive side, by the end of 2024 most tenanted properties in England will be safer than privately owned homes and be better insulated. That said, one of the lowest hanging fruits for more taxation has been landlords for several years now and the government is intent on taxing landlord’s more without regard for some of those costs now ultimately being passed on to tenants.