The cost of renting in the UK is up 12% year-on-year, according to new data by estate agents Hamptons — a price growth which has reached near-decade highs.
The average rent crossed the £1,300 a month mark for the first time last month, 11 months after passing the £1,200 mark and 37 months after passing the £1,000 mark, the data showed.
The highest increases were seen in Scotland where rents ballooned 13.4%, the largest rise in a decade.
Meanwhile tenants in London are paying £5,508 extra per year, with double digit increases for 16 of the last 18 months.
This was backed up by research by estate agents Foxtons released on Monday, which found that in London weekly rent in August was 11% higher than in 2022, with average rental prices remaining high for the third month in a row, showing little change since June.
"Compared to July, demand rose, supply fell and prices remained consistently high," said Gareth Atkins, managing director of lettings at Foxtons. "However, competition was not nearly as frenetic as it was in 2022 and as such, we have not seen further significant price increases."
The data comes as Britain is gripped by a cost of living squeeze, as the Bank of England seeks to control increasing prices via hiking interest rates. Rates guide mortgage costs, which in turn has led to a drop in house prices in recent months as the market cools.
Currently the Bank Rate is 5.25% and despite governor Andrew Bailey telling MPs recently that rates are near the top of the cycle, speculation is growing that the MPC may vote to raise it by another 0.25% to 5.50%.
"Each passing month has ushered in a new rental market record," said Aneisha Beveridge, head of research at Hamptons. "Rents have risen more in the last 12 months than they did between 2015 and 2019.
"While the current pace of rental growth is unsustainable long term, many mortgaged landlords are being squeezed just as tightly as tenants."