Average rents across the UK outside London rose by 5% over in the 12 months to the end of July, according to Zoopla, which added that this was the biggest increase since it began its Index in 2008.
Rents were pushed up by resurgence in demand, especially in UK cities, over the summer, as the economy starts to open more fully, and university students look for accommodation as the new academic year begins.
Even such a strong level of rental growth has not kept pace with earnings growth however, with total average pay up 8.8% on the year according to official figures. Yet the Office for National Statistics has warned that the earnings data has been affected by COVID trends, most notably the loss of lower-paid jobs, which may be putting undue upwards pressure on the earnings data.
The average monthly rent outside London is now at £790, up from £752 in July last year. Rental growth hit 10-year highs in the East Midlands (6.8%), the North East (6.5%), the South West (7.6%), Wales (6.4%) and Yorkshire & the Humber (4.9%) in July.
Meanwhile, rental growth in some cities and towns rose even further, with rental growth in Wigan and Mansfield reaching double figures, at 10.5% and 10% respectively. Hastings, Blackburn, Barnsley and Norwich are registering growth of 9.4% or more. What unites all of these locations is that they remain some of the most affordable places to rent, with the proportion of income needed for a single earner to pay monthly rent below the UK average of 32%, falling to 21% in Wigan.