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Rents still booming – growth hits 12 year high!

The rental market continues to boom despite the growing cost of living crisis, with average rents rising at a 13 year high says Zoopla.

Typical rents across the UK are now nearing £1,000 pcm – £62 more than at the start of the pandemic – after an annual rise of 8.3% in 2021.

The portal says that households who agree new lets are now having to pay an additional average annual cost of £744, compared to the start of the pandemic in March 2020.

This increase means that a single earner can now expect to spend 37% of their gross income on rent, which is up from 34% during most of 2021. However, this now brings the figure broadly back in line with the longer-term average of 36% as rental growth rises in line with wage growth.

Even with the current sharp rise, the overall increase in UK rents over the last five years totals 12% thanks to the decline in rents seen in some areas during the pandemic.

Zoopla says the New Year has seen heightened demand for rental properties, up 76% compared to the New Year markets between 2018 and 2021.

Yet the supply of rental properties recorded in January 2022 in the UK is 39% below levels typically observed at the start of the year. This is creating competition in the market, with the imbalance of supply and demand ultimately spurring rental growth.

Full articlehttps://www.lettingagenttoday.co.uk/breaking-news/2022/2/rents-still-booming–growth-hits-13-year-high-according-to-zoopla

Call Nicola, Ashley and the team for more information on how Kingsley Wood Estate & Letting Agency can assist you in maximising the return from your property- 01505 613799 / info@kingsleywood.co.uk    –