There is a very strong relationship between earnings growth and rental growth. Over the long-term the two move very much in tandem.
Latest earnings data released this week showed a lower growth rate (annual average growth of 4.4%). The first time earnings growth has been at this level since the end of 2020.
Different rent series show different things, this series includes renewals and therefore will always be slower to show rental changes than open market lets only.
The direction of travel is clear, rent rises for those renewing as well as those on new leases will continue to moderate in line with lower earnings growth. Source: Dataloft by PriceHubble, ONS, HM Treasury Consensus Forecasts
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