Rents in the UK have continued to rise in recent months, despite a slowing housing market and minimal wage growth, according to new data from Rightmove.
Average monthly rents for homes outside London now sits at a record £1,385. This is 3.1% higher than the same period a year earlier. For homes in the capital, the average rent was up 1.6% year-on-year at £2,376.
While the rate of increase is the slowest it has been since 2020, this will be cold comfort for millions of families across the country who are already struggling to make ends meet.
Rightmove’s data shows that the cost of renting has risen to 44% of the average wage from 40% five years ago, while the average 20% deposit to buy a new home has increased to £45,374 over the last five years from £40,326.
The increase can at least partially be attributed to the rumoured national insurance tax for landlords in the upcoming UK government budget on November 26. Around one third of landlords told Rightmove that they are now considering exiting the rental market.
However, the majority of landlords are looking to stay in the market and even grow their portfolios, said Colleen Babcock, the portal operator’s property expert.
“Sustained high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty around legislation like the renters’ rights bill and what may or may not be in the upcoming autumn budget isn’t helpful when looking to make financial investments.
“Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration,” she said.
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