Market outlook: rents
16/08/2024
Rental growth has been high in recent years, but the pace is now slowing. Leading indicators are starting to show slowdown in tenant demand and an improvement in supply.
UK annual rental growth is currently at 5.2%, however this has almost halved from 10.3% in July 2023.
Affordability is increasingly critical. Renters paid an average 32.7% of their income on rent in July, slightly weakened in all but two UK regions over the last year.
Rental growth expected to ease back in 2024, broadly in line with earnings growth forecasts and is forecast to moderate to 2.5% by 2028.
Source: Dataloft by PriceHubble, HomeLet July 2024, HM Treasury, Nationwide, CBRE, Savills, Knight Frank, Rightmove, JLL Chestertons, Zoopla. August 2024
