UK Rent Prices Rise 27% Since 2021, Outpacing Wage Growth

The average annual rent for newly let properties has increased by £3,240 over three years, with affordability pressures slowing the pace of growth.

Zoopla reports UK rent prices have risen 27% since 2021, compared to a 19% increase in average earnings during the same period.
The average annual rent for a newly let property now stands at £15,240, up from £12,000 in 2021, equating to an additional £270 per month for tenants.
Rental inflation has slowed to 3.9% over the past year, the lowest rate since 2021, as affordability pressures limit further increases.
Areas with lower rental costs, such as Northern Ireland and parts of northern England, are experiencing the fastest growth, while London rents have risen by just 1.3%.
A shortage of rental properties, stagnant supply since 2016, and landlords exiting the market are key factors driving the ongoing imbalance between supply and demand.