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Rents are rising at the fastest pace since the financial crisis

Home renters are under increasing financial pressure as the price of renting a home soars to its highest level in 14 years.

According to the real estate website Zoopla, average rent in the first quarter of 2022 rose 11% to £ 995.

Tenants are currently paying an average of £ 88 additional rent per month compared to the start of the pandemic. This means that most of your total income is spent on housing.

According to Zoopla, in London, one lessor faces more than half of his revenue on rent.

The new rent agreed on for the average rental property in the capital will cost more than £ 20,000 over the next 12 months after the city’s rent increases by 15% each year.

In the UK as a whole, average rent now accounts for more than one-third of the total income of a single earner.

Due to rising rents, tenants are typically staying in the property for an additional five months compared to five years ago. The average tenant period increased from 51 weeks in the beginning of 2017 to 75 weeks.

Meanwhile, demand for rental properties continues to outpace national supply, pushing up rental costs, Zupla said.

Rental demand is strongest in Scotland, Wales and London, with demand levels above the five-year average by more than 65%.

According to Zoopla, the most affordable rental markets for double-earners tend to be more rural, such as Great Yarmouth in eastern England, South Somerset in the southwest, and Lincolnshire in the northeast of Yorkshire & Hamburg.

Gráinne Gilmore, Head of Research at Zoopla, said: However, the surge in demand for rising rents after the pandemic will normalize throughout the second and third quarters. This means that rent growth levels will begin to ease.

“Affordable considerations can also occur at different times from place to place, but begin to limit further rent increases. Currently, inventory levels are the most constrained, such as London, Scotland and Southwest. Rents may continue to rise longer in London. ”

Rents are rising at the fastest pace since the financial crisis

Source link Rents are rising at the fastest pace since the financial crisis

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