Average rent expected to rise 25pc by end of 2026

[Twiglets1]

According to an article in the Telegraph today, rents will jump by a quarter across Britain in just four years, significantly outstripping house price growth.
The average rent is expected to rise 25pc to almost £1,600 a month by the end of 2026, compared to a more modest 5.5pc rise in house prices.
Rents are expected to grow 8pc this year, 7pc in 2024, 5pc in 2025 and 5pc again in 2026, the estate agent said.

Aneisha Beveridge, head of research at Hamptons, said: “There’s a strong argument that the Bank of England’s quest to quell inflation has hit the rental sector harder than any other part of the housing market.
“A build-up of long-term supply issues combined with soaring landlord costs is putting upward pressure on rents.
“And it’s hard to see any of these pressures receding any time soon, which is why we expect rents to continue rising over the next few years.”
The research said the impact of rising rates so far seemed to be much more pronounced on rents than on house prices.

https://www.telegraph.co.uk/money/property/buy-to-let/landlords-rents-rise-faster-house-prices-hamptons/?WT.mc_id=e_DM202560&WT.tsrc=email&etype=Edi_Cit_New_v2&utmsource=email&utm_medium=Edi_Cit_New_v220230911&utm_campaign=DM202560

Rents round my way have increased by 50% since Jan. A 2 bed was around £950, now £1500. I know because my landlord is selling and I need to find an extra £600 per month from somewhere, except I don't meet the affordability criteria as that is more than 50% of my income. I'm fucked basically .

Mine has been locked at one price for over a decade but just jumped 20% higher out of nowhere.

iNews is covering the same story. They also point to data calculated by Zoopla last month showing that renters were being squeezed by interest rates more than mortgage holders.

Ben Twomey, chief executive of rental campaign group Generation Rent, said the Government’s response to the cost of living crisis was “leaving tenants behind”.

“While so many are suffering at the moment, it is renters who are facing a tougher situation across the board. We get very little notice of large rent increases, which makes it difficult to plan our finances, while support through the benefits system has failed to keep up with rents, and we can be evicted with just two months’ notice.

“In comparison, mortgage holders coming off fixed rates have more time to plan, they have the option of switching to interest-only arrangements to stay afloat, and banks have been asked to give borrowers more time before starting repossession proceedings.”

It's awful really and we seem to be hitting one crisis after another,
God knows where we'll be in a few years

The government has made it more expensive to be a landlord too by changing the rules on tax and mortgage interest. I know everyone loves to hate landlords but obviously the rule change on this coupled with rising interest rates was always going to affect renters. With the EPC change coming up too it's going to get even worse.