Gloomy Forecast for Tenants as Rent Rises Set to Speed Up – BBC News
By Kevin Peachey, Cost of Living Correspondent
Published 8 minutes ago
The rising cost of renting a home in the UK has accelerated after a three-year slowdown, with tenants facing more rent increases ahead.
Average rental costs for new tenancies were up 2.6% in July compared with a year earlier, according to property website Zoopla. While this remains below the general rate of inflation, the platform predicts annual rent rises among privately rented homes will reach 4% or 5% by the end of the year.
The property portal attributes this to:
- Fewer homes available to rent: There is a 3% decrease in listings compared to a year ago.
- Intense competition for rental properties: Each listing now receives an average of over five enquiries, reflecting a post-pandemic rebound in demand.
This situation is particularly pronounced in London, according to the Zoopla report.
While the recent rise in rent costs has been modest, Zoopla warns further acceleration is expected as:
- Landlord investment remains subdued: Higher costs and increased regulation are discouraging new investments in rental properties.
"A sustainable private rented sector requires… responsible landlords to invest for the long term," said Nathan Emerson, CEO of Propertymark. "Increasing supply must remain a priority if we are to give tenants greater choice, improve affordability and create a more stable rental market."
