UK rental growth is picking up as the supply of homes for rent falls. Rents are now 2.6% higher than a year ago, with fewer homes available and rising competition putting renewed upward pressure on rental values.
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Rental inflation at 2.1% understates what most renters moving home are experiencing. Three-quarters of rental areas are growing faster than the national average because 25% fewer homes to rent than pre-pandemic levels is keeping rent inflation positive.
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The rental market is moving back towards balance as supply improves and demand eases. For renters, you can expect more choice of homes and slower rent increases than in recent years.
Rental growth slows to 2.2% as supply rises and demand drops to 6-year low.
Rental market conditions are starting to normalise as supply and demand rebalance. The affordability of renting remains a key constraint on the pace of future rental inflation.
Rents are rising at the slowest pace for 4 years as the supply and demand imbalance narrows. This is welcome news but strong competition for rented homes remains.
Rental inflation is slowing, with London and major cities leading the way. However, towns and rural areas are continuing to see rents rise. Find out what’s happening where you live in our Rental Market Report.
