This article summarises some key points found in the Zoopla UK Rental Market Report Q3 2022, published on 13 September 2022. It’s useful for landlords and property investors to keep updated with changes and trends within the rental sector.
Changes to the rent being charged
The latest data shows that rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today. Average rent increased by £115 per month since last year to stand at £1,051 per calendar month. Rental growth is out-pacing earnings growth in all regions and countries of the UK.
In Nottingham, the annual % change in rent has increased by 12.2%. This has resulted in the average rent per calendar month now being £827.
In comparison in London, the annual % change in rent has increased by 10.0%. This has resulted in the average rent per calendar month now being £872.
The main reason for the rent increase is that there is still an imbalance between supply and demand. The amount of housing stock is still about half that was available five years ago. In addition, factors contributing to this trend are that tenants are not moving to new properties as they want to avoid rent increases. Also, many landlords continue to sell their properties due to tax and regulatory changes.
Properties being sought by tenants
However, there is some indication that the pace of rent increases is starting to plateau. With the cost-of-living increases, many tenants may struggle to pay their rent, so the rent increase cannot continue indefinitely.
A survey carried out by English Housing Survey (2020-21) showed that private renters living in the Midlands and northern regions found rental costs easier to pay than those in the South. In addition, a higher proportion of renters on lower and middle incomes found rents difficult to pay in 2021.
Zoopla's data on rental demand shows that renters are responding to rising rents and cost-of-living pressures by shifting their focus onto smaller homes, primarily 2-bed flats. There has been a steady reduction in the proportion of renters looking for 2- and 3-bed houses and an increase in demand for 1- and 2-bed flats over 2021 and 2022. This trend has been accelerating in recent weeks.
We hope you found this summary useful. If you would like any advice on managing your rental portfolio, you can call us on 01623 490 120 or by email at