UK rental inflation has slowed to 7.8%, down from 11% a year ago – the lowest rate for 2 years, according to Zoopla’s latest Rental Report. The average UK rent is now £1,223 per month and there remain more than 15 enquires for every home for rent – this is down from over 40 enquiries in 2021 but still double pre-pandemic levels.
London has recorded a sharp slowdown in rental inflation to just 5.1%, down from 15.3% a year ago. The balance between supply and demand has narrowed the most in London, with demand 30% lower than a year ago and available supply increasing by the same amount. High rents in London mean affordability constraints are compounding the scale of the slowdown in rent inflation.
According to the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Survey, the battle between tenant demand and lack of available rental properties continues, with 34% of survey respondents still expecting rental prices to rise in the next three months.
