Why is rent at an all-time high in 2023?

Posted: 07 September 2023

2023 has seen some of the highest rents being demanded yet. It has shown that the average annual rent has increased by 5.2% in England in the last 12 months to July 2023. Official data on wages and inflation suggests there could be a further rise in the Bank of England’s benchmark rate which would mean further pressure on landlords and homeowners through relatively high mortgage rates.

What are the causes of the increased rent?

The main cause of the increase in rent is due to the high living costs and inflation. With the basic necessities, utilities, council tax and general expenses at an all- time high, which as a result has caused further pressure on landlords causing the increase in rent, to then cover those expenses.

Most importantly to understand is that the rental market is easily influenced by many economic, social, and demographic factors. As well as, the local market conditions and property characteristics, can also affect rental prices in certain areas.

Where are the best and worst places to rent?

Rental prices can vary due to multiple factors, such as where the property is located, the size of the property and the utilities that come with the property. There isn’t so much a best and worst place to rent, it just depends on the affordability of the property you would like to rent. The more expensive regions tend to be in cities like London, Oxford, and Cambridge; Due to their economic opportunities and high demands, causing rents to usually be higher in these areas. However, for more cheaper rental prices, places in the midlands or up north tend to be considerably cheaper e.g. county Durham, Hull and Derbyshire.

Is it better to rent or buy at this time?

Generally renting is an expensive solution for long-term housing, as you have to keep paying rent for however long you reside in that property, which can be costly in the long run. However, renting is a better solution for short term housing, especially due to these difficult financial times, as owning a home is deemed more expensive now than renting. Many people will find it difficult getting their foot on the property ladder in the first place as deposit for mortgages are at an all-time high.

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