The headlines from the latest UK Rental Market Index from Hometrack are:
- UK rental inflation slows to +7.8%, a 2-year low.
- Rental demand is down 20% year-on-year as one-off pandemic factors ease and the labour market cools.
- A fifth more homes are available for rent than a year ago but the current supply is still below pre-pandemic average.
- Rental inflation slows rapidly in London to 5.3% as supply/demand imbalance narrows and affordability pressures hit pace of rent rises.
- Scotland remains the area with the fastest annual rental growth at 11.6%
- Over half of private rented homes are in £1,000+ per month markets.
- Rental affordability is at a decade-high and unlikely to improve quickly.
- Expansion in rental supply is the main route to better affordability.
You can read the full report online for the Rental Market Report March 2024 on the Hometrack website.