Rental growth has been high the last few years. Affordability is now increasingly critical and rental growth rates are expected to moderate.
UK annual rental growth is currently at 7.9%, however this has moderated slightly from highs of 10.4% in June 2023.
Renters paid an average 33.3% of their income on their rent in April. Renter affordability has weakened in all UK regions over the last year, most notably in the North East and Wales.
Rental growth will likely still be high in 2024, although down from the last few years, but beyond 2024 expect rates of closer to long-term earnings of around 3% p.a. Source: #Dataloft by PriceHubble, HMRC, Bank of England, HomeLet April