Through the roof - Recent trends in rental-price growth
Tuesday 9th of April 2024
Resolution Foundation has published an article we would like to share with you looking at recent surges in private-rental prices, what's been driving this high price growth, and where private-rental prices might be headed in the future. More information below:
With many more families in the UK now renting, and renting for longer, the rising cost of doing so poses a significant challenge to living standards. This briefing note looks at what has been driving the rapid increases in rents over the past two years, and what that means for the future.
We find that earnings growth and a post-pandemic re-adjustment are key drivers of the rental price growth we’ve seen in recent years, with popular theories about the rise, including an ‘exodus’ of landlords from the private-rental sector, not supported by the evidence. While rental-price growth for new tenancies is set to continue to ease in the coming months, many renters will still see their housing costs rise over the coming years, as the high market rates we’ve seen filter through the private-rental sector.
Against this backdrop, it’s crucial that the Government continues to support low-income renters by ensuring the Local Housing Allowance keeps pace with rents over the coming years.