New research from Rightmove shows that rental demand has surged, with the average UK home now having 25 prospective tenants vying to view it, compared to just 6 in 2019.
This echoes recent data from Zoopla indicating that average rental prices across the UK are 10% higher than a year ago. In London, rents have climbed even more sharply, up 12.1% versus last year.
Zoopla's analysis reveals that average monthly rents for new leases in the UK have risen 10.3% over the past year to £1,164. More cities now have average rents exceeding £1,000, with Cardiff, Southampton and York newly joining this high-rent bracket.
As per Zoopla, rental inflation has now exceeded 10% for 19 straight months due to persistent housing shortages. In London, average rents have jumped over 11.5% to £2,055 per month.
Looking ahead, Zoopla expects rental inflation to stay above 9% through 2023, fuelled by robust wage growth. They forecast national rental growth will moderate to 5-6% in 2024, though cities are likely to continue seeing above-average increases.
Experts say sparse supply in the private rental sector coupled with resurgent demand from students post-COVID, and higher mortgage rates deterring would-be homebuyers, are exacerbating the rental supply-demand imbalance.
Read the original article on the BBC here.