The average cost of renting a new UK home is now £3,240 higher than at the end of the pandemic lockdowns, after three years of rental growth outpacing earnings, research has shown.
Income rose by 27% after 2021, Zoopla found in the state, compared with a 19% increase in earnings, taking the annual income of a buy-to-let property to £15,240, up from £12,000 in 2021.
Rental costs have started to soar as the Covid lockdowns are eased in 2021, which has resulted in average private rents. hitting record highs.
An increase in housing costs was largely blamed on The demand for rental properties is highly anticipatedon which matter there was a great struggle among the colonists.
However, incomes are rising at their slowest level in more than three years, as tenants reach the limits of what they can spend on housing.
Rental costs In fact, properties recently rose 3.9% over the past year, which is the lowest growth since August 2021.
In addition, incomes in areas with high rental costs have risen more slowly, such as London, where they are increasing by 1.3% annually, up from 8.7% last year.
This compares with much higher rental growth in areas with lower rental costs, such as Northern Ireland, where incomes rise by 10.5%, and in the North-East of England, where they rise by 8.7%.
Average rental costs in the UK are expected to rise by 4% by 2025, although they are not predicted to rise as much in London as in other big cities, and will rise by a larger percentage in more affordable parts of the country.
The imbalance between supply and demand for rental property, which has pushed rental costs higher in recent years, started narrowing, Zoopla found.
Richard Donnell, executive director at Zoopla, said: “The number of tenanted homes has not grown since 2016, creating a shortage of rents at a time when demand has resonated in a strong market and rising property prices.
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“Rental growth has slowed, but we expect a continued shortage of rental supply to keep upward pressure on rents.”
Despite this, a significant increase in recent years in rents for private property owners has continued constantly selling rental homes between larger institutions and higher borrowing.
Zoopla believes that the peak of the sale-of-mouth by private landlords has already passed, but it is not clear when the market conditions will start challenging landlords to invest and start increasing the rental supply.
Control desire to expand housebuilding “The fastest way is pressure on renters,” boosting the supply of private and social rented homes, Donnell said. However, he added that private owners should be encouraged to remain in the market.