Average UK rent on new properties has soared by more than £3,000 since end of pandemic

According to new analysis, the average cost of renting a newly let property has surged by £3,240 annually since the string of Covid-19 lockdowns ended.

Renters are now grappling with an average annual bill of £15,240, reported home search platform Zoopla, marking a rise of around £270 per month since the pandemic's conclusion. The initial boom in rental costs kicked off in 2021 as lockdown restrictions were lifted, and the demand for housing climbed sharply against the backdrop of limited property availability.

Since that period, the yearly expense for renters has soared by 27%, whereas average earnings have only seen a 19% increase within the same timeframe. Zoopla highlighted that while the pace of rental price increases has dipped to a three-year low, tenants continue to struggle with affordability, often seeking more budget-friendly locations as a consequence.

Richard Donnell, Zoopla’s executive director, commented: "Private renters moving home have faced rents rising faster than earnings over the last three years. The number of rented homes hasn’t grown since 2016, creating scarcity for renters at a time when demand has boomed on a strong labour market and the rising cost of home ownership.

"Rental growth has slowed but we expect an ongoing lack of rental supply to keep an upward pressure on rents."

Labour has professed its aim to construct 1.5 million new homes within the upcoming five years, promising to relax planning regulations to simplify processes for construction enterprises. But Zoopla forecasts no significant upsurge in the number of properties available for rent next year.

The number of homes on the market is still below what it was before the pandemic in all areas except the East Midlands, a situation attributed in part to private landlords offloading rental properties due to rising mortgage costs. However, Zoopla has indicated that the peak period of private landlords selling up may have come to an end.