Gloomy forecast for tenants as rent rises set to speed up
UK rental costs are rising again after a brief period of stagnation, with experts predicting annual increases of up to 5% by year-end. High competition and a shortage of available rental properties are driving these costs, despite recent legislative changes intended to protect tenants.
Why it matters
Rising rents exacerbate the cost-of-living crisis for UK households, potentially impacting disposable income and economic stability.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 9 minutes ago The rising cost of renting a home in the UK has accelerated after a three-year slowdown - with tenants told to expect more pain to come.
Average rental costs for new tenancies were up 2.6% in July compared with a year earlier, according to property website Zoopla.
That remains lower than the rate of rising prices in general, but the property portal has forecast annual rent rises among privately rented homes will hit 4% or 5% by the end of the year.
It said there were fewer homes available to rent and - with potential first-time buyers put off by higher mortgage rates - competition for rental places in some areas was more intense.
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