Rental demand has risen strongly amid increased activity in city centres, but supply is still constrained, leading to the fastest growth in rents in Q4 than at any time over the last 13 years.
- UK annual rental growth for new lets rises to +8.3% in Q4 2021 as demand gains momentum amid chronic shortage of supply
- Even so, rent as a proportion of a single earner income (37%) is still broadly in line with 10 year average (36%)
- London rents are up +10.3% on the year, but large falls in 2021 mean average rents are up just £18 a month since March 2020
- UK rental demand is up 76% in January compared to similar periods between 2018-2021
- Cumulative rental growth is 12% over the last 5 years, slightly under the rise in average hourly earnings over the same period
- As the demand peak falls back in coming months, less pressure on rental supply will create more competition in the market, and put the brakes on the scale of rental growth.
Read the full report here.