The chronic imbalance between supply and demand continues to push rents higher, but we expect increasingly stretched affordability will start to reduce the pace of rental growth into 2024. Richard Donnell, executive director at Zoopla, said: "Renters continue to face a relentless increase in rents, compounding wider cost of living pressures and making home moving decisions ever more challenging, especially for singles and those on lower incomes. Surging rent costs are set to slow towards 8% by the end of the year as affordability pressures start to rein in rises, but this is still far outstripping wage growth, according to Zoopla. The proportion falling behind with their rental payments has doubled to 8% in the last six months and almost 15% said they are now finding it "very difficult" to pay, up from 10%, the report showed. Its latest UK market rental report revealed there are signs of stress emerging among tenants, given that more than half have been hit by an increase in the past six months. The data reveals that rental affordability is at its worst for 10 years across seven of the 12 regions in the UK.Īverage rental costs for new lets surged by 10.4% year-on-year across the UK in April, or by 9.1% excluding London. This is up from a 10-year average of 27%. Data from property portal Zoopla showed that rent has been soaring faster than earnings for nearly two years and now accounts for 28.3% of pre-tax earnings. The average British tenant is now spending more than 28% of their pre-tax earnings on rent, marking the highest level in a decade, according to new figures.
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