Index of Private Housing Rental Prices, UK: October 2022

An experimental price index tracking the prices paid for renting property from private landlords in the UK. Includes measures of owner occupiers’ housing costs.

This is the latest release. View previous releases

Contact:
Email Aimee North

Release date:
16 November 2022

Next release:
14 December 2022

1. Main points

  • Private rental prices paid by tenants in the UK rose by 3.8% in the 12 months to October 2022, up from 3.7% in the 12 months to September 2022.

  • Annual private rental prices increased by 3.7% in England, 3.2% in Wales and 4.2% in Scotland in the 12 months to October 2022.

  • The East Midlands saw the highest annual percentage change in private rental prices (4.8%), while London saw the lowest (3.0%).

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2. UK private rental prices

Private rental prices paid by tenants in the UK increased by 3.8% in the 12 months to October 2022, representing the largest annual percentage change since this data series began in January 2016.

Annual percentage change of private rental prices paid by tenants in the UK remained steady between November 2019 and the end of 2020. Rental price percentage change slowed in early 2021, which was driven by the slowdown, and later reduction, of London rental prices. This may have reflected lower demand in London because of the coronavirus (COVID-19) pandemic. For example, remote working meant workers no longer needed to live close to offices and housing preferences changed.

Private rental prices in the UK increased in late 2021, with widespread annual growth across all regions, except London where prices decreased. Private rental price annual percentage change has increased across all regions in 2022, including in London, reaching the largest UK annual percentage change recorded since this data series began in January 2016.

In the 12 months to October 2022, rental prices for the UK excluding London increased by 4.1%, up from an increase of 4.0% in September 2022. Private rental prices in London increased by 3.0% in the 12 months to October 2022, up from an increase of 2.8% in September 2022. This is the strongest annual percentage change in London since July 2016. Despite this, London's rental price percentage change in October 2022 remains the lowest of all English regions.

The Association of Residential Letting Agents (ARLA) reported in their Housing insight report, September 2022 that the demand for properties continues to increase, as do rental prices. The supply of available houses to rent has not risen in the last four months.

The Royal Institution of Chartered Surveyors (RICS') UK Residential Market Survey - October 2022 (PDF, 4.80MB) reported tenant demand remaining firm in October 2022, with tenant enquiries rising across the UK.

These supply and demand pressures can take time to feed through to the Index of Private Housing Rental Prices (IPHRP), which reflects price changes for all private rental properties rather than only newly advertised rental properties. Our recent Measuring rents: stock vs flow blog post explains how we measure price change in IPHRP.

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3. Annual UK private rental price percentage change by country

In England, private rental prices increased by 3.7% in the 12 months to October 2022, representing the highest annual percentage change since this data series began in January 2006. When London is excluded from England, private rental prices increased by 4.0% in the 12 months to October 2022. This has remained unchanged from September 2022, and is the highest annual percentage change since this data series began in January 2006.

Private rental prices in Wales increased by 3.2% in the 12 months to October 2022. This is up from an increase of 2.7% in September 2022, and is the highest annual percentage change since this data series began in 2010.

Private rental prices in Scotland increased by 4.2% in the 12 months to October 2022. This is up from an increase of 3.9% in September 2022, and is the highest annual percentage change since this data series began in 2012.

The annual percentage change for Northern Ireland in October 2022 (9.1%) was higher than the other countries of the UK. Northern Ireland data have been carried forward since August 2022. Northern Ireland data will be updated in our Index of Private Housing Rental Prices, UK bulletin to be published on 14 December 2022.

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4. Annual UK private rental price percentage change by English region

Focusing on the English regions, the largest annual rental price percentage change in the 12 months to October 2022 was in the East Midlands at 4.8%.

The lowest annual rental price percentage change in the 12 months to October 2022 was in London at 3.0%.

Figure 6: London rental prices experienced larger peaks and troughs than other regions

Index of Private Housing Rental Prices percentage change over 12 months, by English region, January 2007 to October 2022
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Notes:
  1. The light blue line shows England's 12-month average rental price percentage change.
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5. Private rental data

Index of Private Housing Rental Prices, UK: monthly estimates
Dataset | Released 16 November 2022
Rental price statistics historical data time series (indices and annual percentage change).

Index of Private Housing Rental Prices, UK: annual weights analysis
Dataset | Released 23 March 2022
Aggregate weights information used in the experimental Index of Private Housing Rental Prices (IPHRP).

Measures of owner occupiers' housing costs
Dataset | Released 24 March 2021
Monthly historical time series for all three approaches to measuring owner occupiers' housing costs -- payments, rental equivalence and net acquisitions -- including contributions to growth from the different approaches, UK.

Measures of owner occupiers' housing costs: weights analysis
Dataset | Released 24 March 2021
Aggregate inflation measure for owner occupiers' housing costs (OOH). Includes monthly time series and weights for all three approaches of measuring OOH - payments, rental equivalence and net acquisitions - aggregated with the Consumer Price Index (CPI), UK.

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6. Glossary

Index of Private Housing Rental Prices (IPHRP)

The IPHRP measures the change in the price that tenants face when renting residential property from private landlords.

Administrative data

Administrative data are data that people have already provided to the government through day-to-day activities, for example, health records, social security payments or educational attainment information.

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7. Measuring the data

Economic statistics governance after EU exit

More information regarding the new governance following UK's exit from the EU is available in our previous release.

Future developments

Following the Digital Economy Act 2017, the Office for National Statistics (ONS) gained access to Valuation Office Agency (VOA) private rental microdata. We aim to redevelop the Index of Private Housing Rental Prices (IPHRP) and private rental market summary statistics (PRMS) to produce mix-adjusted average rental prices that are comparable over time. We also aim to refine geography to lower geographic levels, to better meet user needs.

An overview of the methodology that we intend to use is available in The redevelopment of private rental prices statistics, intended methodology. We will now need to spend more time ensuring the production system is developed on a strategic platform and is sustainable. This has resulted in our initial timetable being out of date. More information and an updated timetable for these developments is available in our Private rental prices development plan: updated February 2022. If you have any queries or feedback on these developments, please email hpi@ons.gov.uk.

Sources

The IPHRP is constructed using administrative data. This means that the index makes use of data that are already collected for other purposes to estimate rental prices. The sources of private rental prices are the VOA, Scottish Government, Welsh Government and Northern Ireland Housing Executive (NIHE). Data for Northern Ireland also include data provided by Propertynews.com.

The sources of the annually updated Index of Private Housing Rental Prices, UK: annual weights analysis dataset are the Department for Levelling Up, Housing and Communities (DLUHC), Scottish Government, Welsh Government, NIHE and VOA.

The IPHRP's indices are updated on a monthly basis with the new monthly estimate. Data are indexed with January 2015 as a base year. Data for England are provided from January 2005, data for Wales from January 2009 and data for Scotland from January 2011. UK data are from January 2015.

Quality

More information on strengths, limitations, appropriate uses, and how the data were created is available in our Index of Private Housing Rental Prices quality and methodology information (QMI).

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8. Strengths and limitations

Strengths

The Index of Private Housing Rental Prices (IPHRP) is constructed using large administrative sources, specified in Section 7: Measuring the data. Annually, over 450,000 private rental prices are collected in England, 30,000 in Wales, 25,000 in Scotland and 15,000 in Northern Ireland. The index not only measures the change in newly advertised rental prices but reflects price changes for all private rental properties.

Limitations

The IPHRP is published as price indices, rather than average prices. It is also only published down to a country and regional level. While actual rental prices cannot currently be published in the IPHRP because of data access constraints, we are actively working to acquire the necessary data.

The IPHRP is released as Experimental Statistics, and is subject to revisions if improvements in the methodology are identified. Results should be interpreted with this in mind.

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10. Cite this statistical bulletin

Office for National Statistics (ONS), released 16 November 2022, ONS website, statistical bulletin, Index of Private Housing Rental Prices, UK: October 2022

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Contact details for this Statistical bulletin

Aimee North
hpi@ons.gov.uk
Telephone: +44 1633 456400