Chronic Lack of Rental Stock Increases Pressure on Tenants as Rents Continue to Rise in the UK
Published by Magnate Assets on
Apr 19, 2023
This Spring, Fine & Country is expecting rental growth to remain strong, with the average London prime market rental now £3,762pcm, up 14% year-on-year. London is particularly thriving, with the annual prime rental growth standing at 21%. This is due to the widening supply-demand imbalance in the market, and the fact that private rented housing supply has only grown 1% since 2016.
It has been noted that properties are being snapped up quickly; 63% of agents saying they take less than a week to go from listed to let, and 39% citing stock levels lower than a year ago. Despite a slight slowdown from its peak of 12.3% in mid-2022, rental inflation is still outpacing earnings growth, with average rents for new lets having increased by 11.1% in the last year.
“Sigma Capital report that in the same period net happiness amongst renters has dropped 8%, with 37% of renters concerned about security of tenure. These results highlight the need for more comfortable, affordable renting options, particularly considering the uncertainty amongst renters and the ongoing cost of living crisis.”