The cost of renting rockets in the East Midlands
The news comes in a report by the Office for National Statistics
The cost of renting here in the East Midlands is going up faster than anywhere else in the country.
The Office for National Statistics says private rents here went up by 2.7% in the 12 months to August.
The analysis looks at the types of areas that are seeing the fastest house price growth during the coronavirus pandemic.
With private rents also rising, the ONS also examined how some workers are at risk of being priced out, contributing to skill shortages in tourism and hospitality that some local economies rely on.
The main points from the ONS statistical bulletin for September:
• UK house price growth is being driven by rural and coastal areas, with young and low paid workers increasingly facing the prospect of being unable to afford to live there.
• In July 2021, house prices were rising at three times the national rate (8.0%) in some rural and coastal areas, such as Conwy in North Wales (25.0%), North Devon (22.5%) and Richmondshire in the Yorkshire Dales (21.4%), continuing a trend seen during the pandemic. The seven areas that recorded house price falls were all London boroughs.
• Prospective home buyers are seeking more space, with prices for detached houses (9.0% growth in July) consistently rising faster than terraced houses (7.7%) or flats (6.1%).
• UK private rents increased by 1.3% in the 12 months to August, rising to 2.0% excluding London. The fastest rates of growth were in the East Midlands (2.7%) and the South West (2.6%), while London was the only region to record a decrease (-0.4%).
• Growth of tenant demand appears to be exceeding supply of lettings, with some second homes turning into holiday lets. This affects those looking to rent in tourist hotspots, where rates of second home ownership are highest.
• While house prices have been rising, many people have seen their income fall because of furlough, reduced hours or losing their job.
• Tourist hotspots were among the areas with the highest average furlough rates during the pandemic.
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