PayProp has published its latest rental index for the second quarter of 2022, showing South Africa’s rental growth is continuing its upwards trend, which started in April 2021.

Over the second quarter, the group tracked rental growth of 2.5%, 2.6% and 2.7% in April, May and June, respectively. Johette Smuts, the head of data analytics at PayProp South Africa, said: “Inflation, unfortunately, also continued to rise in the most recent quarter with CPI breaching the Reserve Bank’s target upper limit of 6% during May and June.”

Smuts added: “The rising cost of fuel and food contributed to the current high levels of inflation, which can be seen around the world. Central banks are responding by increasing interest rates – including the Reserve Bank, which has raised it at every bimonthly meeting since November 2021.”

Smuts said that in July of this year, the repo rate was increased by 75 basis points to 5.50%, and further aggressive hikes can be expected during the rest of the year.

The fastest rising rents in South Africa are currently in the Northern Cape, up 9% compared to the end of Q2 2021. The province is the second most expensive to rent a house or apartment in South Africa with an average rent of R8,626 (£435) per month.