UK rents have soared by £3,240 a year since end of pandemic

The average cost of renting a property has skyrocketed by £3,240 a year since the Covid-19 lockdowns ended. Based on new data from Zoopla, tenants are now facing an average yearly cost of £15,240, an increase of approximately £270 per month following the pandemic.

Rent costs began to soar in 2021 because of high demand from tenants after lockdown restrictions were lifted, but there was a limited supply of homes available. The annual cost of renting has gone up by 27 percent, outpacing the 19 percent rise in average income during the same time frame.

Zoopla reports that the pace of rent increases has now tapered to a three-year low. Nonetheless, tenants are still struggling with affordability, prompting many to relocate to more budget-friendly areas.

READ MORE: Inside tiny flat which was once a 'caretaker's cupboard' on market for £250,000

Commenting on the current rental situation, Richard Donnell, Zoopla’s executive director, expressed: "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 announced its objective to construct 1.5 million new homes in the next five years and proposes to ease planning regulations to accelerate building efforts. However, despite these aspirations, Zoopla foresees no significant rise in the rental home stock for the upcoming year.

The number of available homes across the nation remains short of pre-pandemic figures in all regions except for the East Midlands, due partly to private landlords selling rental properties as mortgage costs climb. Regardless, Zoopla indicates that the peak of these sell-offs by private landlords may be over.

Landlords are expected to await lower interest rates before increasing their portfolios, which should subsequently enhance the availability in the rental market. Zoopla's spokesperson further stressed the importance of housing expansion plans, stating: "The ambitions to expand home building are important, as the quickest way to ease the pressure on renters is to boost the supply of private and social rented homes."

They also added a significant note on the role of private landlords: "Private landlords will continue to play an important role and should be encouraged to remain in the market."