Rental Costs Surge: Average Monthly Rent Up by 46% Over the Last Decade

A recent study by Zero Deposit reveals a staggering 46% increase in the average monthly rental cost in the UK over the past decade, driven by surging demand for rental properties. Despite the introduction of the Tenant Fees Act in 2019, which capped rental deposits, the average cost of renting has continued to climb, exacerbating financial challenges for tenants.

Zero Deposit's analysis of rental market data indicates a 66% increase in the number of deposits held across the UK over the past ten years, with a notable 5% rise in the last year alone. This surge in demand for rental homes, coupled with a reduction in available properties, has led to a significant rise in rental prices.

In 2023, the average monthly rent soared to £1,232, marking a 9.7% increase from the previous year. This uptick in rental costs has far outpaced the modest annual growth rate of 2.3% observed between 2014 and 2020, highlighting the severity of the current rental crisis.

Despite the slight relief provided by the Tenant Fees Act, which limited rental deposits, the latest figures show a 3.1% increase in deposit costs in 2023, reaching £1,026. This escalation adds to the financial burden faced by renters, further hindering their ability to secure affordable housing in the private rental sector.

Sam Reynolds, CEO of Zero Deposit, underscores the growing reliance on the rental market over the past decade, attributing the recent surge in demand to skyrocketing house prices. Reynolds emphasizes the urgent need for increased supply of quality rental accommodation to address the imbalance between demand and availability, expressing concerns over the escalating financial obstacles faced by renters.

Source: Property Reporter