UK Rent Costs to Outpace Wage Growth for Three Years

The Resolution Foundation forecasts a 13% increase in rent, nearly double the expected wage growth, amid a high demand for rental properties.

Rent increases in the UK are forecasted to significantly outpace wage growth over the next three years, with a predicted 13% rise in rent compared to a 7.5% growth in earnings.
The Resolution Foundation highlights the enduring impact of the COVID-19 pandemic and a shortage of housing supply as key drivers behind the surging rental costs.
Despite a cooling property market, the demand for rental properties remains high, with 15 prospective tenants for every available rental property.
Government measures, including the Renters (Reform) Bill and investment in the Affordable Homes Programme, aim to provide more security and support for renters.
Experts argue for the construction of more homes as a long-term solution to the rental crisis, while short-term measures include uprating the Local Housing Allowance.