The UK is currently in the depths of a cost of living crisis that has left many people struggling to cover basic expenses, with prices at their highest rate for over 30 years.

And as the lasting financial impact of the pandemic on renters and first-time buyers continues to be investigated, new research from property company Rightmove has found that the average rental asking price in the UK continues to increase at the fastest rate on record.

Housing charities had already impressed the importance of getting ahead of the crisis before it worsens and building a new generation of decent social homes with fair rents that people can afford.

However, Rightmove’s quarterly rental trends tracker indicated that the average asking price per calendar month is £1,068 outside London and £2,142 inside the capital – a 9.9% rise for the rest of the UK, and a 6.1% jump for London.

At the end of 2020, London had recorded a near-record 6.4% drop in average asking rents, as landlords lowered prices to incentivise renters to stay in their properties.

However, with the easing of lockdown restrictions, London hit record annual growth of 10.9%, with asking prices in the capital now 3% higher than before the pandemic started.

And the growth doesn’t seem to be slowing down any time soon. Rightmove predicted that asking prices will continue to rise by a further 5% this year, as competition between tenants for available properties increased by nearly double the previous year.

“Peoples’ biggest monthly bill is the cost of their housing – so news of rising rents will be a blow for any struggling renter, but particularly women on lower incomes,” Polly Neate, chief executive of housing charity Shelter, previously told Stylist.

“Sky-high rents, rising food and fuel costs and the end of pandemic protections will leave many tenants having to choose between paying their rent or putting food on the table. Many thousands are at risk of losing the roof over their head in the tough months ahead.”

But it’s not only the rental market that has been affected by price increases. Rightmove’s data also found that the average price tag on a home jumped by £852.

The average asking price for a home in January 2022 is £341,019, with first-time buyer homes hitting a new record of £214,176.

Commenting on the data, Rightmove’s director of property data, Tim Bannister, said: “All of the signs suggest that prices are likely to continue to rise until more choice is available.

“Three regions are in most urgent need of new supply, the East Midlands, South West and South East of England, as they are now at unsustainable rates of annual price growth above 10%.”

Images: Getty