(qlmbusinessnews.com . Thurs 12th Dec, 2024) London, UK —
Rent Costs Surge by £270 Since Pandemic, Zoopla Reveals
The cost of renting a newly let property has climbed significantly since the end of the coronavirus pandemic, with average monthly rents now £270 higher, according to property platform Zoopla.
As of now, tenants are paying an average of £1,270 per month—equivalent to £15,240 annually—marking a sharp rise since the lifting of lockdown restrictions in 2021. High demand and limited availability of rental properties have fuelled the increase, with demand currently about 30% higher than pre-pandemic levels.
Tenants Struggle to Keep Up
Despite the rise in rents, wages have not kept pace, leaving many renters in financial strain. The fiercely competitive rental market has seen desperate tenants offering months of rent upfront or even submitting CV-like applications to secure homes.
Among the hardest-hit groups are those in lower-income brackets, students, and renters in traditionally affordable areas, where rent increases have been most pronounced. Richard Donnell, executive director of research at Zoopla, explained:
“With more renters than there are homes to rent, people are seeking out the best value for money. Within cities, rents are typically rising faster at the lower end of the market.”
Student Blyth Eling, who studies at the University of Brighton, revealed that her £1,000-per-month rent consumes almost her entire student loan. “It leaves me with virtually no spending money,” she said.
A Cooling Market, but Uneven Trends.
Zoopla noted early signs of the rental market cooling, with the rate of rent increases slowing to the lowest level in three years. Nationally, rents for newly let properties rose 3.9% in the past year. However, pockets of sharp increases remain, with Northern Ireland recording a 10.5% rise and towns like Rochdale and Blackburn seeing double-digit growth.
On the flip side, London experienced the slowest rise, at 1.3%.
Landlord Exodus Raises Concerns.
The rental market is also grappling with reduced supply as landlords leave the sector. The National Residential Landlords Association (NRLA) reported that nearly a third of landlords plan to sell their rental properties within the next two years.
The NRLA is urging the government to reform housing taxation and provide clarity on no-fault eviction rules to retain responsible landlords and increase rental availability.
Meanwhile, tenant advocacy group Generation Rent is calling for immediate government action to stabilise rents and unfreeze the Local Housing Allowance to protect vulnerable renters from homelessness.
Looking ahead, Zoopla forecasts an average rent rise of 4% in 2025, further tightening the financial pressures on UK renters as demand continues to outstrip supply.
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