Rents soar with most deprived areas surging in popularity

Tenants in England and Wales spent a whopping £71.5 billion on rent in 2022 – almost the same as the entire forecast Corporation Tax intake.

The record figure was revealed in Hampton’s analysis of the latest census data which also showed that in the last decade the number of households renting privately increased by 151,800 in the 10% most deprived areas of England and Wales, compared to an 80,100 rise in the 10% least deprived areas.

POOREST

More than one in five (23%) of households in the poorest 10% of the country rent privately, up from 18% a decade ago, and well above the 13% that rent in the most affluent areas.

Hamptons rental data shows that the total amount of rent paid by the 10% most deprived areas has more than doubled in a decade, rising 102% from £2.7 billion in 2012 to £5.4 billion in 2022.

More than half (54%) of the decade’s growth came from rising rents, while 46% came from the increase in privately rented households.

The latest figures released from the census also show that the number of households renting privately has grown by 1.12m over the last decade.

Across the whole of England and Wales tenants spent a record £71.5 billion on rent in 2022. This roughly equates to the Office for Budget Responsibility’s (OBR) forecast of £73.9 billion corporation tax intake in 2022-23.

GROWTH

Aneisha Beveridge, Head of Research at Hamptons, says: “Growth in the private rented sector over the last decade has

come on the back of fewer younger people buying their own home, particularly in the less affluent areas.

“While tighter mortgage lending criteria introduced following the financial crash has reduced the number of borrowers struggling to make their mortgage payments, it has also put homeownership beyond reach for some people on below average incomes with small deposits.”