Market outlook: Rents, moderation required

• 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