13% RENT SURGE
Millions face extra hikes in next three years as rises outstrip pay
AVERAGE rents could surge by 13% over the next three years, piling more pressure on cash-strapped tenants.
Despite millions already facing sky-high costs, a leading think tank warns today there are “significant housing cost rises yet to come”.
After the fastest-ever rises in recent years, new tenancy costs are already up by 18% since January 2022.
The Resolution Foundation reckons in three years, average rents would have risen by more than 13%. This would far outstrip the expected pay growth. Cara Pacitti, from the Resolution Foundation, said: “Millions of families agreeing new tenancies have faced surging rents in recent years. Rises for new tenancies are starting to slow. But how much renters pay will continue to outgrow how much they earn for years to come as those not yet exposed to higher prices are hit.”
According to figures last year, roughly 4.6 million households in England are privately renting.
The Resolution Foundation says the number of renters has risen from 11% in the 1990s to almost 20% today. Property website Zoopla said in February the average monthly rent in London stood at around £2,119.
The figure was £1,162 in the East of England and lowest in the North East at £695.
Generation Rent chief Ben Twomey said: “Renters have nowhere to hide from the housing crisis. If your landlord thinks someone else would pay higher rent, they can demand more, and threaten you with eviction if you push back.”
A Government spokesman said: “Our Renters (Reform) Bill will give people more security in their homes and empower them to challenge poor practices.
“We are investing £11.5bn in affordable homes and remain on track to build one million over this Parliament.”