The average UK rent has increased by £115 per month over the last year to £1,051 per month according to Zoopla in their latest rented sector report.
Rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today. Rental growth is out-pacing earnings growth in all regions and countries of the UK.
The average UK single earner is spending 34.4% of their income on rent.
The rental market faces a chronic imbalance of supply and demand that has led to a surge in rents. The stock of homes for rent remains almost half the average compared to the last 5 years. The average letting agent has just 8 homes available to rent - half that of the summers 2017-2019. The flow of new homes to rent is running 7% below the long-term average, as renters stay put to avoid rent increases. At the same time, private landlords continue to sell homes to rationalise their portfolios in the face of tax and regulatory change.
Rents are rising quickly across all parts of the UK, ranging from 7.6% in the North East to almost 18% in London. While the annual growth rate has accelerated in the last year, it is starting to plateau.
Another important trend is rental growth in urban areas across England (10.5%) - which is outpacing that of rural markets (8.5%) as strong employment growth drives demand in cities. Higher levels of new-build supply concentrated around city centres is also becoming more appealing to renters looking for smaller homes with lower running costs.
Zoopla’s data on rental demand shows that renters are responding to rising rents and cost-of-living pressures by shifting their focus onto smaller homes, primarily 2-bed flats. They have seen a steady reduction in the proportion of renters looking for 2- and 3-bed houses and an increase in demand for 1- and 2-bed flats over 2021 and 2022. This trend has been accelerating in recent weeks.
The shift in demand partially reflects localised changes in supply, but, the overriding impact reflects affordability and-cost-of-living concerns. Outside London, the current difference in rents charged for a 2-bed flat and 3-bed house is £105 per month, which translates into £1260 per year in rental cost. It’s not just rental costs shaping demand - lower running costs of smaller homes will also have growing appeal.
What’s happening in the North West
The average rent has increased by 12.2% to £728 per month*. That’s the second highest in the UK, excluding London, with Wales at the top. The average time to let is 14 days.
The average single earner in the North West is spending 26.4% of their income on rent.
*Average 1-4 bed properties.
PR Postcode Area Data
In the PR postcode sector the average rent is £631 per month which is a 6.3% year on year rental price change. The average time to let is 12 days.
Our Local Homehunters
The highest percentage of homehunters1 in the PR postcode area are aged 25-34 taking 22.7% of the share.
The top three keywords used by homehunters in the same area are garage, bungalow and detached with the most popular property type being a 3 bed semi-detached.
1 Zoopla internal analysis of site visitors and their interactions with the portal.
You can download the full report here Zoopla UK Rental Market Report Q3