UK rental market experiences chronic shortage of properties as rents increase 12.3%

Rental prices across the UK have increased by 12.3% over the last 12 months according to Zoopla’s latest UK Rental Market Report released earlier today, with the average stock of properties available sitting at -46% below the 5-year market average.

The average rental price across the UK has risen by an average £115 per calendar month in the last year according to property portal Zoopla, with rental growth accelerating from the annual rate of less than 2% in July 2021 to 12.3% as of today, to sit at an average price of £1,051 per month. The market is also experiencing a chronic imbalance of supply and demand which has subsequently caused a surge in rental prices, with the average number of properties available to rent in the UK currently sitting at almost half the number of the last five-year average. With an average of just 8 properties available for each letting agent, the flow of new available properties is running 7% behind the long-term average as urban areas and cities continue to increase in popularity amongst tenants, and more young people are searching for accommodation within the major cities.

“The chronic shortage of homes for rent and strong demand is pushing rents higher. Renters are adapting their strategies and starting to seek out smaller homes at lower rents and running costs.” Richard Donnell, Executive Director of Research at Zoopla.

Of all the major cities in the UK, nowhere experienced a higher annual increase in rental prices than Manchester, with a staggering average increase of 15.5% on the previous year, taking the average rental costs in Manchester to £893 per month – followed by Glasgow and Bristol who have experienced increases of 14.4% and 12.9% respectively. The North West also experienced the largest year on year rental cost increase outside of London, with an increase of 12.2% and average rents sitting at an average of £728 per month for the region.

To learn more about how you can capitalise on the increasing rents in Manchester and the North West, get in touch with one of our expert property consultants today.