According to Zoopla, the average UK rental price is currently £1,223 which is a +7.8% increase over the last year.


Are rental prices rising higher than the growth of wages?

The Guardian have reported that there is an expected further 13% increase in rental prices by 2027. The Office for Budget Responsibility have found there is only a predicted 7.5% increase in wages for the average worker over that same time period.

The affordability of rental homes will become more difficult as wages don’t match the cost of homes.

The minimum wage in the UK has recently been increased, however, this is still not enough to combat the cost of living.

Why are rental prices increasing?

There are almost a 5th (18.8%) of UK homes which are privately rented as of 2023. This mean with so many people renting the demand for property is increasing, due to the accessibility to buying a home has become more difficult for the population. Despite House prices falling, they are still too much for many to start their journey on the property ladder which leaves many still renting.


There is a short term fall in prices

The increase in rental prices is slowing and despite the +7.8% increase, this is the slowest rate of growth seen in the last 2 years showing a gradual decline.

The demand for rented homes has dropped by a 5th over the last year as well which is causing landlords to reduce their asking prices.

Data from Rightmove shows that the average time a property is listed before either being let or placed under offer has gone from 33 days to 39. Landlords are being forced to decrease the prices and renters are saving.

Chesterton’s letting agency in London revealed there has been 41% more rental property available than in January 2023. With more property available renters can take longer to decide and also be more specific with what they want.

Rental prices are slowly falling with London experiencing the biggest inflation slowdown, currently rising at +5.1% compared to last year’s rates of +15.3%.

Despite this inflation slowdown rent is still 29% higher on average than pre-pandemic levels and this is not expected to last into the coming years.



London residents are paying at least 50% more for rent that anywhere else in the UK according to USwitch.

London remains the most expensive place to live and rent in the UK with the average rental prices at £2119 per month.