Last month, the Office for National Statistics (ONS) confirmed what many renters would have felt as though they knew already: rents across the UK are increasing at their fastest pace on record. In the 12 months to March, rents rose by 4.9 per cent across the UK, the quickest rate of growth since the ONS started recording the data in 2016. For England alone, the data goes back to 2006, but here too the ONS has never recorded a faster pace of growth than the current 4.6 per cent.
Reports from across the rental market are eyebrow-raising. Estate agents say there are record numbers of lease applications for a dwindling supply of rental stock. As such, landlords in the market can pick and choose which tenants they want, and some are even asking for CVs from prospective renters to help make their choice.
Pinning down the exact reason for this acceleration is tricky. While many explanations have been offered, no single one fully explains why the speed of rental increases has never been this intense before – or why it has picked up so drastically so recently. Revealing the real reason for rapid rent rises requires looking at all the theories together.