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Rental Market Report – June 2023

Research and Insight June 2023
Top insights
Executive summary
• Rental inflation running in double digits for 15th consecutive month
No let up in supply/demand imbalance as we enter busier summer period when demand typically increases by up to 40%
Rents have grown faster than average earnings over last 21 months
Rental costs as a proportion of earnings reach highest for a decade
Emerging evidence of growing stress for renters on lower incomes
Weakness in the sales market likely to support rental supply in H2
Higher mortgage rates hit 20-30% of landlords with largest loans
Landlord sales are concentrated in London and the South East where yields are lowest and extra equity required at refinancing
+ 10.4 %

Annual rental inflation for new lets, UK

28 %

Rent as % gross earnings – highest for a decade

51%

Landlord sales located in London and South-East

The cost of renting is at its highest for a decade with emerging signs of stress for some renters, especially those on lower incomes. Boosting rental supply is the key policy lever to support a healthier and more sustainable rented sector

Richard Donnell Executive Director
Entrenched mis-match in demand and supply
Source: Zoopla Research
4 weeks to 11 June 2023 vs 5-year average