Rental price growth in the UK has been at its highest rate since record-keeping started in 2016, official data showed on Monday. Private rental prices in Britain rose by 4% in the 12 months to November 2022, up from 3.8% in the 12 months to October 2022, according to the Office for National Statistics.
Nearly a quarter, 26%, of all renters surveyed in December reported their rent payments went up in the last six months, as the UK faces a bitter cost-of-living crisis triggered by soaring inflation and a deteriorating economy.
Renters spend 24% of their median weekly expenditure on rent compared to mortgage holders who spend 16% of their median weekly expenditure on their mortgage.
Meanwhile, mortgage interest rates started rising in 2022. "This is likely to make borrowing more expensive for those with fixed rates deals coming to an end in 2023," the statistical office said.
It further said: "More than 1.4 million households in the UK have been seeing the prospect of interest rate rises when they renew their fixed rate mortgages in 2023."