The headlines from the Q4 2022 Rental Market Report from Hometrack are:
- Rental inflation is 12.1% per annum, well ahead of earnings (6%)
- No sign of a slowdown due to chronic supply/demand mismatch
- Demand is 46% above average while total supply is 38% lower
- Rents in the largest UK cities are registering the fastest growth rates
- Rental (un)affordability for a single earner is at its highest for over a decade (35% of average weekly earnings)
- Demand for one-bed flats jumps as renters seek better value
- Stretched rental affordability will start to hit demand and the pace of rent increases in H1 2023
- Rent growth to slow to 4-5% by the end of 2023
You can read the full report online for the Q4 2022 Hometrack Rental Market Report on the Hometrack website.