Zoopla’s latest report into the UK Rental Market has confirmed what we already knew: renters have become increasingly under the cosh.
Zoopla found that rents for new lets are £270 per month higher than three years ago, making the average annual cost £3,240 higher than in 2021.
This means that the average rental cost has risen by 27 per cent since 2021 — compared to earnings growth of 19 per cent.
They also predicted that average UK rents will rise by a further four per cent in 2025.
However there is some good news in that annual rate of rent inflation is now at 3.9 per cent, which is a little lower than previously.
Angharad Trueman, ARLA Propertymark President, commented: “Whilst it is encouraging for renters to see price rises starting to slow down, plus data showing the gap between supply and demand starting to narrow too, there is still much work that needs to be done to ensure that the private rental sector can deliver stability for both landlords and tenants.
“This ideally should include revisiting tax structures and regulations that are deterring long term investment in the private rental market. It is vital there is robust provision that helps ensure the supply of rental homes grows in line with predicted increases in demand.
“The Renters’ Rights Bill that is currently being debated in Parliament, which will pave the way for the biggest overhaul in regulations for the rental market in over thirty years, must provide fairness and balance moving forward for all involved."
The Renters’ Reform Coalition (RRC), the campaign group comprising renters and housing organisations, has called on the government to strengthen the forthcoming Renters’ Rights Bill to provide renters more protection against rent hikes with a cap on rent increases and a commission to explore longer term solutions to make renting more affordable.
Lucy Tiller, Policy and Public Affairs Manager at the RRC, said, “Everybody needs a secure home, but every week shocking rent hikes such as these are forcing families out of their homes and communities.
“The forthcoming Renters’ Rights Bill is welcome, but it won’t address this crisis – the government should commit to a National Rental Affordability Commission, to find ways to put the brakes on soaring rents, and a cap on rent increases within tenancies, to help tenants stay in their homes.”
Meanwhile, Chief Executive of Generation Rent Ben Twomey said: “Everyone needs a safe, secure and affordable home. But renters across the UK are facing soaring rents which are far outstripping our earnings.
“The government’s Renters’ Rights Bill is a good start in giving renters more protection from eviction, but there are very few measures in the Bill to give us the breathing space we need from the cost of renting.
“The government must act urgently to slam the brakes on rising rents, whilst unfreezing the Local Housing Allowance rate will protect families on low incomes from poverty and homelessness.”
