Zoopla, a property portal, has reported that rents for new lets have increased by 6.6% in the year to April, although this is the slowest annual rise in two and a half years. This increase equates to an additional £80 per month compared to last year’s average rent on a new let. Despite demand softening, there are still an average of fifteen people vying for each rental property. Before the pandemic, this number was only six, according to Zoopla.
Richard Donnell, executive director at Zoopla, stated: “Rents continue to grow faster than average earnings although the gap is much narrower than a year ago.” Zoopla predicts that the rental sector will see a continued slowdown in rental price growth to 5% in 2024. However, this would result from a still lesser demand from tenants rather than landlords producing more properties to let, according to Zoopla, which covers nearly 80% of the rental market.
Over the last couple of years, rents for new lets have increased substantially because of a variety of factors, including student demand. Still, primarily due to supply failing to keep up with demand, landlords have faced increasing costs, causing some to sell up. Letting agents have reported that properties list and let far more quickly than before the pandemic due to high demand.
In April, the average UK monthly rent for a new let was £1,226, according to this data. Despite the slowing growth rate, new lets in the UK are still relatively expensive and could become increasingly problematic for many looking to rent in the future
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