Residents in the most economically deprived areas of the UK have experienced a staggering 52% increase in rent over the past four years. In comparison, tenants in the wealthiest regions have only seen a 29% rise in rent during the same period, according to recent data.
The figures, analyzed by estate agent Hamptons and shared with The Observer, highlight the alarming trend of rising rents in areas where people are least able to afford them. In 2019, renters in deprived regions paid an average monthly rent of £499. By 2023, this had surged to £759. Meanwhile, in affluent areas, renters paid an average monthly rent of £1,078 in 2019, which has increased to £1,387 this year.
The CEO of Shelter, Polly Neate, expressed concern about the growing unaffordability of the private rental sector and the limited supply of homes available to tenants who are already grappling with rising costs. The reliance on mortgage financing by landlords in less affluent areas has contributed to the surge in rental costs. With interest rates increasing from 1.75% in August 2022 to 5.25% today, some landlords are passing on these rising costs to their tenants. As a result, tenants in deprived districts have witnessed an average £97 increase in monthly rent since 2022.
The housing crisis in the UK is exacerbating the cost of living crisis, as rents, mortgage rates, and essential expenses like food and energy continue to strain incomes. Renters, who are already more likely to live in poverty, face the double burden of high housing costs and low incomes. According to the Joseph Rowntree Foundation’s 2022 poverty report, a third of private tenants (approximately 4.2 million individuals) are in poverty. In many cases, high housing costs have been the driving force behind their economic hardships.
These findings reveal the stark disparity in rent increases between deprived and affluent areas of the UK. For instance, the district with the highest percentage rise in rental costs among deprived regions was Linthouse, Glasgow, where monthly rents soared from £597 in 2019 to £985 in 2023. This represents a substantial increase of 65%. On the other hand, affluent Ascot in Berkshire experienced a far lower percentage increase in rents. Monthly rents in Ascot rose from £3,224 in 2019 to £4,163 in 2023, reflecting a 29% increase.
The combination of low incomes and high costs is also contributing to the problem of debt among low-income households. Data from the Joseph Rowntree Foundation indicates that 20% of these households are taking on new debt to cover rent and energy expenses.
The dire situation faced by many renters is exemplified by the story of Esther Planas, an artist living in Hackney, east London. Planas, who has resided in Hackney since the 1990s, is now being forced to leave her home due to the exorbitant increase in rent. Her monthly rent will rise from £1,175 to £1,620, a significant amount that she cannot afford on her artist’s income. Planas describes feeling anxious and troubled as she searches for a new place to live, with most rents exceeding her budget. She believes that government regulation is urgently needed to address the housing crisis and bring about much-needed change.
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