Wed 29 Mar 2023
The average rents for new lets in the UK have risen by 11.1 percent compared to last year, showing a slight slowdown against 2022.
Zoopla figures show that earnings have increased by 6.7 percent compared to last year, aggravating the mismatch between rents and earnings.
In the middle of last year, rental inflation reached 12.3 percent with Zoopla noting that there is “no sign of any imminent slowdown”.
Zoopla said that rents have risen by around 20 percent in three years, which is an extra £2,200 a year.
Zoopla said that demand, which is measured by enquiries received by each estate agency branch, is 10 percent higher than last year.
“Rents will continue to rise ahead of incomes unless we see a sustained increase in rental supply or a material weakening in demand, both of which appear unlikely at this stage,” it added.
The firm continued that enquiries peaked in summer last year at double the five-year average, but there were a third fewer homes to rent than normal.
The report said that the number of privately rented homes “remains largely static” at just over five million.
“In simple terms, a static supply of rented housing means new investment that adds to supply is offset by property leaving the sector, as landlords dispose of rented homes as part of ongoing portfolio rationalisation or exit the rental market altogether,” it explained