Gloomy forecast for tenants as rent rises set to speed up
The cost of renting is expected to rise by 4% or 5% a year by December, according to property website Zoopla.
UK renters face an increasingly difficult rental market as rental costs are set to accelerate, according to a gloomy forecast. Average rental costs for new tenancies rose by 2.6% in July compared to a year ago, although that is still lower than the rate of overall price increases. Property portal Zoopla predicts annual rent rises among privately rented homes could reach 4% or 5% by the end of the year.
Fewer homes are available for rent, and competition for rental properties is more intense in some areas due to rising mortgage rates putting off potential first-time buyers. Richard Donnell, Zoopla's executive director, emphasized that the rental market is highly sensitive to even minor changes in the availability of homes for rent.
The new Renters Rights Act, implemented in England in May, aims to bring significant changes to the sector after a long period of stagnation. Although the cost of renting has recently eased, the number of homes available for rent has decreased by 3% compared to a year ago, with each listing receiving over five inquiries on average.
Rental demand has been particularly strong in London. The situation varies depending on the location, with more affordable areas able to absorb rising rents better than expensive ones. Nathan Emerson, CEO of Propertymark, stressed the need for more high-quality rental homes, highlighting the importance of creating a sustainable private rented sector through responsible investments.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
