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December UK Rental Market Report

by | Jan 17, 2024 | Clients

The headlines from the latest UK Rental Market Index from Hometrack are:

  • The UK is past peak rental growth. We expect annual UK rental growth to halve over 2024 to 5%, the lowest growth since 2021.
  • London will lead the slowdown with rents expected to increase by just 2% over 2024 as affordability pressures impact demand.
  • Demand is weakening slowly off a high base, down 11% year on year, but still a third higher than the 5-year average.
  • There are signs asking rents have overshot in some markets, evidence of growing resistance to higher rents.
  • The supply-demand imbalance in rented housing is not going to disappear in 2024 but the market will become more into balanced.
  • Rents in regional markets are set to out-perform where affordability is less of a constraint on rental growth.

You can read the full report online for the Rental Market Report December 2023 on the Hometrack website.