Blog Post

Rental growth is slowing

Gill - Head Gillian Bell Oct 25, 2024, 13:15 PM

After the last couple of years of high growth, latest evidence shows that rental growth rates are slowing.

Across the largest cities in the UK then the average rate of rental growth slowed to 8% from 10% a year earlier. In London the slowdown has been even more distinct, slowing to 5% on latest data form 13% a year earlier.

Affordability plays a central part in rental demand: renters get to make regular choices on where they live, perhaps moving to a cheaper location in the face of steeply rising rents.

With the latest affordability ratio for London at 32.1% (versus a 5 year average of 30.0%) it is clear that stretched affordability has been a key factor in slowing the rate of rental growth faster.

Average affordability across the 60 largest cities in the UK is currently 25.8% (versus 5 year average of 24.5%). Source: Dataloft by PriceHubble. Data was for the 60 largest cities and towns across the UK and based on flats only. Affordability: % of gross earnings spent on each renters share of rent

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