Rental growth rises to more than 12%

20th September 2022

For the past 12 months, rental growth has gone from an annual rate of less than 2% in July 2021, to a huge 12.3% today, and it is out-pacing earnings growth in all regions across the UK. The reason? There’s a chronic imbalance of supply and demand that has led to a surge in rents, with the number of homes available to rent at almost half the average compared to the last five years.  

With average rents in London 7.8% higher than before the pandemic, the rush for rentals is real and there’s often numerous offers on the table for one property. And with more and more tenants staying put, there’s also less stock coming onto the market. Meanwhile some private landlords are selling their home/s to rationalise their portfolios in light of tax and regulatory changes, another factor that is affecting stock levels. 

Other rental trends showcase that more and more prospective tenants are looking for smaller properties due to the cost-of-living crisis, so the demand for studios and one- and two-bedroom properties is also on the up. 

If you’re a landlord looking to rent out your property and/or have it managed, contact Andrew Barnett by calling 020 8940 2233 or emailing majorsonphipps@btinternet.com.

Looking to rent? Browse our properties here: https://bit.ly/3QYeSwv