Recent data from Zoopla has unveiled a remarkable 10.3% increase in the average rent for new leases since September 2022. Tenants are now paying an average of £1,164 per month. This surge has elevated the annual average rent to almost £13,970, signifying a £1,320 increase from the previous year when it was £12,670 in September 2022.
This increase can be attributed to the ongoing supply-demand imbalance in the rental market, which continues to drive rents higher.
This marks the 19th consecutive month where the rental index has reported inflation exceeding 10%, underscoring the consistent upward trend in rental prices.
In the North West, the region has seen an annual rental price change of 11.3%, with an increase of £80 in annual rental costs, bringing the average monthly rent to £796.
Manchester is emerging as a city with some of the highest rates of rental growth. This makes it the most expensive city for renters in northern England.
Areas like Central Manchester, Trafford, and Salford have already surpassed the £1,000 average rent threshold.
Looking ahead to the rental market's future, it is predicted that rental inflation will remain above 9% for the rest of the year. This projection is supported by strong earnings growth, while high mortgage rates continue to deter many renters from transitioning into homeownership.
Furthermore, the outlook for 2024 suggests national rental growth in the range of 5% to 6%. Cities are expected to outpace this level, maintaining rental inflation above the national average.
You can find more information on this topic by visiting the following link https://www.zoopla.co.uk (Accessed: 24 OCT 2023).