Renters are being warned over huge increases to their monthly bills if prices rise in line with the hikes already being seen across other living costs.
With the cost of living crisis continuing to worsen, a number of factors continue to have a direct and dangerous impact on the daily lives of people across the UK. Soaring energy prices and rising food bills are just some things causing households to struggle.
Up to now, the price of rent has not yet matched the increasing costs seen across other areas of life. In the past year, the average cost of a month’s rent in the UK has increased by £98, rising from £1,061 in 2021 to £1,159 in 2022, an annual increase of 9.2%.
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While this is certainly a notable rise, it’s nothing compared to the increases seen elsewhere. If rent were to increase at the same rate as other living costs, it will rise by as much as £2,270 a month, according to market analysis from Ocasa.
Sales and Marketing Director at Ocasa, Jack Godby, told the ECHO: “Currently, and compared to other cost of living increases, tenants haven't felt the squeeze quite as badly when it comes to their rental bill.
"However, it can only be a matter of time before this area of life also strains household finances as landlords raise rents in order to compensate for their own cost increases in both their personal and professional lives. Many households who are already bracing for a very harsh winter are likely to be under even more strain before Spring 2023 and we expect that the cost of renting may well be yet another household outgoing driving this financial strain.”
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