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100+ Private rental market statistics 2024

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This page includes relevant private rental market statistics for 2024. This includes average costs, rental affordability by region, tenant satisfaction, and how UK private rent has increased over time.

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2023 was a volatile time for the UK private rental market. Rental prices soared in the UK because of the cost of living crisis, with private tenants facing the highest increases.

Rising house prices are preventing many from saving for a house. So the private rental market continues to play a role in the lives of millions across the UK.

Our research gathers the latest private rental statistics for 2024, analysing prices across the UK, assessing how rates have changed over time, and making predictions about the future of private rent in the UK.

Top 10 UK rental market statistics

The latest private rental market statistics found that the average cost of rent in England was £850 per month in September 2023. This is the highest figure ever recorded and represents a 3% rise from April 2023, when the figure was £825.

UK rental costs rose between 2020-23, with the average cost in September 2020 standing at £700 per month. Since then, rates have only increased. The latest figures mean that average rent in England increased by over a fifth (21.4%) between 2020 and 2023 alone.

Which region pays the most for rent?

Tenants in London pay the highest rent of anywhere in England, with a median rate of £1,625 per month. This means that private renters in the capital pay at least 54% more, on average, than tenants in any other region.

Residents of inner London (£1,900) typically pay around a third (31%) more in rent than those living in outer London (£1,445).

A regional breakdown of the median monthly rent across England in the year to September 2023

Map graphics showing the median average monthly rent across England in 2023.

Outside of London, the South East had the highest median rent in 2023, at £1,050. This was around 14% more than the next most expensive region (East of England), and the only region outside the capital with median monthly rent above £1,000.

The report also found:

  • There was a significant difference in rental costs between the north of England and the south, with the 3 cheapest regions all in the north
  • The North East had the lowest rent in England in 2023, with median costs of £550 per month – two-thirds (66%) less than London
  • Yorkshire and the Humber (£650) and the North West (£675) both recorded median rents less than half the amount of London

The 12-month price change remained fairly steady between 2018 and 2021 across the UK. It fluctuated between 0.9% in January 2018 and 1.9% in December 2021. Rent prices increased to 2.1% in January 2022 before soaring to 4.2% by the end of the year.

This upward trajectory continued throughout 2023, reaching the 5% mark in May before surpassing 6% in October (6.1%).

A breakdown of annual changes in UK rental prices between 2018 and 2023

Line graph showing the annual changes in UK rental prices between 2018 and 2023

By contrast, London saw smaller increases between 2018 and 2021, with rental prices fluctuating between -0.4% and +1.3%. This continued until May 2022 when rental prices increased by 1.5% within 12 months. This was the highest increase since 2017 at this time.

From here, prices began to accelerate, reaching 4% by December 2022. By June 2023, rents in the capital were up 4.6% year-on-year. This was the first time since 2016 that rental growth was higher in London than in the rest of the UK. The rapid increase continued throughout 2023, reaching 6.8% by October.

From analysing private rental market statistics, we predict that rent price increases could slow considerably in 2024. A report from Zoopla projected that average annual rent rises in the UK could fall to 5%. It could fall to 2% in London by December 2024.

A key factor behind these projections is a rise in the availability of rental homes in late 2023, which coincided with a decline in demand. In December 2023, rental demand was 11% lower than in 2022. That’s despite still being almost a third (32%) higher than the average over the previous 5 years.

A breakdown of the % change of rental demand in December 2023 compared to previous periods

% difference between December 2023 and the 5-year average % difference between December 2023 and January-December 2022
Rental demand
+32%
-11%
Stock of homes for rent
-18%
20%
Flow of new supply
-6%
0%

(Source: Confused.com via Zoopla)

The availability of rental homes also increased in December 2023, rising by 20% compared to the annual figures for 2022. However, availability remained almost a fifth (18%) below the 5-year average.

The flow of new supply remained unchanged from 2022 – 6% less than the average between 2017-2022.

A report from Zoopla looked at the number of rental enquiries privately rented homes received from prospective tenants in a typical month.

The average number of enquiries per rental home in the UK stood at 16.8 in November 2023 – a 30% decline from the previous month. This is the lowest figure recorded since December 2021, when the average number of enquiries was 13.8.

Throughout 2022, the number of rental enquiries accelerated in the UK, surpassing 22 in March before peaking at 45.4 in September. Though growth slowed in 2023, monthly figures remained consistently above 20 until November.

A monthly breakdown of the number of enquiries per rental accommodation in the UK and London

Line graph showing the number of enquiries per rental accommodation in the UK and London between 2021 and 2023.

In London, the average number of enquiries per rental accommodation was 9.7 in November 2023. This was a decline of more than a third (34%) from October 2023, and the first time numbers had fallen below 10 since July 2021.

Like the rest of the UK, London’s number of rental enquiries spiked in 2022. These exceeded the 20 mark in January (21.2) before peaking at 36.7 in August of that year. Though numbers would fall below 20 in early 2023, they rose again in July 2023 to 21.9.

The latest figures for November 2023 represent a decrease of nearly 56% from July 2023 and a 74% fall from August 2022.

Analysis found that 10% of rental adverts in London lowered their initial asking price by 5% or more in the year to November 2023. This represents a rise of 0.8% from the previous month and is the highest total since November 2020 (11.5%).

Asking for price reductions became increasingly uncommon in the capital in 2021. They fell as low as 3% in September 2021 and remained below 4% until October 2022 (5%). From here, percentages fluctuated between 5% and 7.5% until October 2023, when the number reached 9.2%.

The latest figure means that 47% more homes in London reduced their asking price in November 2023 compared to the start of that year.

A monthly breakdown of the number of properties reducing their rental costs by 5% or more in the UK

Area graph showing the number of UK properties reducing their rental costs by 5% or more between 2021 and 2023.

Across the rest of the UK, the number of rental properties lowering their asking price was 7.2% in November 2023. This was a rise of 0.4% from the previous month and the highest figure recorded since before 2017.

The rates across the UK were more stable than in London. They fluctuated between 3% and 5% for most of 2021 and 2022, before rising to 6.1% in November 2022. Price reductions generally fluctuated between 4% and 6% in 2023 until a 0.8% rise in October took the total to 6.8%.

The latest UK private rental statistics show a sharp rise in the number of privately rented households between 2003 and 2023. There were 2.69 million privately rented UK households in 2003. This number rose by more than three-quarters (77%) over the following 10 years to 3.96 million in 2013.

A breakdown of the number of UK households occupied by private renters between 2003 and 2022

Area graph showing the number of UK households occupied by private renters between 2003 and 2023.

The number of UK private renters peaked in 2017 at 4.69 million before falling by 3% in 2018 (4.53 million). Things remained fairly stable from here, rising to 4.55 million in 2019 (+0.4%) before falling nearly by 3% in 2021 to 4.43 million.

2022 saw the number of privately rented households rise by 4% to 4.61 million – the highest number since 2017.

A report from Statista found that the average annual salary in the UK was £34,963 in 2023. However, this figure varies considerably when looking at wages across different parts of the country.

Average annual UK pay by region

Recent private rental statistics show residents in London had the highest average annual salary in the UK. With an average yearly pay of over £44,000, those in the English capital typically earn around a fifth (21%) more than any other UK region.

A regional breakdown of the UK average annual salary in 2023

Horizontal bar chart showing the average annual salary in the UK by region in 2023

Aside from London, the only other UK regions with average salaries above £35,000 per year were the South East (£36,560) and Scotland (£35,518). The rest of the regions recorded salaries of between £31,000 and £35,000.

At the other end of the scale, the North East had the lowest average annual salary in 2023, at £31,200. This means that the average North East worker earns around a third (29%) less than their London counterparts. And around 15% less than someone in the North West.

Those with the lowest wages spend the highest portion of their earnings on rent in England. In 2022, people in England’s lowest income group spent a third (32%) of their wages on a home that was in the lowest rental price group.

A breakdown of the average percentage of earnings tenants in the lowest income group in England spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in England
Rent prices lower than 75% of people in England
32.3
32.0
Income lower than 75% of people in England
Rent prices lower than 50% of people in England
41.7
42.8
Income lower than 75% of people in England
Rent prices higher than 75% of people in England
56.8
59.2

(Source: ONS)

These figures rise to around two-fifths (42.8%) for anyone in this income category who’s renting a property that’s in the middle rent price group. This is up from 41.7% the previous year.

Anyone in the lowest income group who’s renting a home in the most expensive housing category would have to spend nearly three-fifths (59.2%) of their wages.

A breakdown of the average percentage of earnings tenants in the middle income group in England spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in England
Rent prices lower than 75% of people in England
20.0
19.5
Income lower than 75% of people in England
Rent prices lower than 50% of people in England
25.8
26.1
Income lower than 75% of people in England
Rent prices higher than 75% of people in England
35.2
36.1

(Source: ONS)

Those with wages in the middle-income group typically only need to spend around a quarter (26.1%) of their wages to pay for a property within the same group. This figure drops to less than a fifth (19.5%) for homes in the lowest group and rises over a third (36.1%) for properties in the highest bracket.

A breakdown of the average percentage of earnings tenants in the highest income group in England spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in England
Rent prices lower than 75% of people in England
12.7
13.2
Income lower than 75% of people in England
Rent prices lower than 50% of people in England
16.4
17.6
Income lower than 75% of people in England
Rent prices higher than 75% of people in England
22.4
24.3

(Source: ONS)

Those in the highest income group required just under a quarter (24.3%) of their wages to rent a property within the same group in 2022. That’s a rise of 1.9% from 2021. This figure drops below 18% (17.6%) if they’re looking to rent a property in the middle rent price bracket. It falls below 14% (13.2%) for homes in the lowest price bracket.

Tenants in the lowest income group in Wales typically spend the highest portion of their earnings on rent. Those in the lowest income group spent a third (31.9%) of their wages, on average, to rent a home in the lowest rental group in 2022.

A breakdown of the average percentage of earnings tenants in the lowest income group in Wales spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Wales
Rent prices lower than 75% of people in Wales
37.0
31.9
Income lower than 75% of people in Wales
Rent prices lower than 50% of people in Wales
45.2
37.6
Income lower than 75% of people in Wales
Rent prices higher than 75% of people in Wales
55.5
46.6

(Source: ONS)

This increased to almost two-fifths (38.2%) if they wished to rent a home within the middle-income group It increased to nearly half (48.4%) for those seeking a home within the highest rental bracket.

A breakdown of the average percentage of earnings tenants in the middle income group in Wales spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Wales
Rent prices lower than 75% of people in Wales
19.2
19.9
Income lower than 75% of people in Wales
Rent prices lower than 50% of people in Wales
23.4
23.4
Income lower than 75% of people in Wales
Rent prices higher than 75% of people in Wales
28.8
29.1

(Source: ONS)

Those in the middle income group needed just under a quarter (24.7%) of their wages to rent a property within the same group in 2022. This is down 1.5% from 2021. These figures fell to just over a fifth (21.7%) for homes in the lowest group. They rose above 30% (31.3%) for homes in the most expensive bracket.

A breakdown of the average percentage of earnings tenants in the lowest income group in Wales spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Wales
Rent prices lower than 75% of people in Wales
12.7
13.3
Income lower than 75% of people in Wales
Rent prices lower than 50% of people in Wales
15.5
15.7
Income lower than 75% of people in Wales
Rent prices higher than 75% of people in Wales
19.1
19.5

(Source: ONS)

Those in the highest income bracket spend the lowest percentage of their wages on rent. They need around a fifth (21.5%) of their earnings to rent a home within the most expensive category in 2022. That’s a rise of 4.1% from 2021.

This figure fell below 16% (15.7%) for homes in the middle rental bracket. It was just over 13% (13.3%) for homes in the lowest price range.

In 2022, Northern Ireland residents in the lowest wage bracket needed over a third (33.5%) of their wages, on average, to rent a low-price bracket property. This is a rise of 2.5% from the previous year and is 1.5% more than English tenants in the same income group.

A breakdown of the average percentage of earnings tenants in the lowest income group in Northern Ireland spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Northern Ireland
Rent prices lower than 75% of people in Northern Ireland
31.0
33.5
Income lower than 75% of people in Northern Ireland
Rent prices lower than 50% of people in Northern Ireland
36.9
38.2
Income lower than 75% of people in Northern Ireland
Rent prices higher than 75% of people in Northern Ireland
44.2
48.4

(Source: ONS)

This figure increased to nearly 40% (38.2%) for anyone in the lowest income group looking to rent a home within the middle price bracket. This is up 1.3% from 2021. Those in the lowest income group looking to rent a home in the highest price range would need almost half their wages (48.4%) to do so.

A breakdown of the average percentage of earnings tenants in the middle income group in Northern Ireland spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Northern Ireland
Rent prices lower than 75% of people in Northern Ireland
20.2
21.7
Income lower than 75% of people in Northern Ireland
Rent prices lower than 50% of people in Northern Ireland
24.0
24.7
Income lower than 75% of people in Northern Ireland
Rent prices higher than 75% of people in Northern Ireland
28.8
31.3

(Source: ONS)

By contrast, those in the middle-income group needed just under a quarter (24.7%) of their wages to rent a property from the middle rent price group. This represented a rise of 0.7% from 2021. But it’s still 1.4% less than the percentage of wages needed in England for those in the same group.

This figure falls to just over a fifth (21.7%) for middle-earners renting a home in the lowest price bracket. It rises to nearly a third (31.7%) if they wish to rent a home in the highest price category.

A breakdown of the average percentage of earnings tenants in the highest income group in Northern Ireland spend on rent

Income group Rent price group Average percentage of earnings spent on rent in 2021 Average percentage of earnings spent on rent in 2022
Income lower than 75% of people in Northern Ireland
Rent prices lower than 75% of people in Northern Ireland
12.2
14.9
Income lower than 75% of people in Northern Ireland
Rent prices lower than 50% of people in Northern Ireland
14.5
17
Income lower than 75% of people in Northern Ireland
Rent prices higher than 75% of people in Northern Ireland
17.4
21.5

(Source: ONS)

Tenants in the highest wage bracket needed just over a fifth (21.5%) of their wages to rent a home in the highest rental group. This was a rise of nearly 3% (+2.9%) from 2021. It’s 2% more than the percentage of wages needed by Welsh tenants in the same rental situation.

This figure drops to 17% for high-income residents looking to rent a home in the middle price bracket. It falls below 15% (14.9%) for homes in the lowest bracket.

Recent private rental market statistics show that the majority of tenants in England received rental increases between 2022 and 2023. More than three-fifths (63%) reported an increase in rent in the year to September 2023. This is the highest figure recorded since June 2023 when two-thirds (66%) of tenants reported rises.

The percentage of people reporting price rises remained consistently above 50% between September 2022 and September 2023. October 2022 was the only exception with an increase of 48%.

A monthly breakdown of the percentage of properties in England that saw their rent increase, decrease, or stay the same (2022-2023)

100% stacked bar graph showing the percentage of properties in Wales that saw their rent increase, decrease, or stay the same between 2022 and 2023.

Only 4% of tenants reported a decrease in rent in the year to September 2022, with this figure dropping as low as 1% by August 2023. Though this figure rose to 2% the following month, it remained around three-fifths (61%) lower than the number of people who reported rises in their rent.

The number of tenants reporting no change in rental costs fell from 48% in October 2022 to 32% in July 2023. This figure rose to 38% the following month before falling again to 35% in September 2023.

Private rental market statistics show more than 4 in 10 (41%) Welsh tenants reported an increase in rent over the year to September 2023. This is up 8% from the same time in 2022 when a third (33%) reported rises.

A monthly breakdown of the percentage of properties in Wales that saw their rent increase, decrease, or stay the same (2022-2023)

100% stacked bar graph showing the percentage of properties in Wales that saw their rent increase, decrease, or stay the same between 2022 and 2023.

The number of people reporting increases remained consistently below 40% between September 2022 and July 2023, with January 2023 the only month exception (46%). Numbers would nearly double between July and August 2023, from 31% to 60%, before falling back to 41% (-19%) the following month.

Over this period, the percentage of people reporting rental drops was 2% in the year to September 2023 – unchanged from the same time the previous year.

The number of people reporting no change in rental prices stood at 57% in September 2023 – a fall of 8% from October 2022.

Average year-on-year rental increases remained above 8% for England and Wales in the year to September 2023. Wales endured higher price rises than England over this period, of between 1.5% and 3.1%.

After a year-on-year increase of 12.7% in September 2022, Wales’ rental growth would fall below 11% by December (10.7%). Rental growth then peaked at 13.4% in March 2023. From here, price rises began to steady, falling to a low of 10.8% in August 2023 before rising to 11.3% the next month.

A monthly breakdown of the average private rental price increases in England and Wales between 2022 and 2023

Stacked bar chart showing the average private rental price increases in England and Wales by month between 2022 and 2023.

Average rental prices in England have been similarly volatile, rising by 8.4% in September 2022 before reaching a peak of 10% in February 2023. After a steady decline in the summer months, rental price rises fell to 8.1% in August 2023. They jumped to 9.7% the next month.

Recent private rental statistics found that combined, UK renters spent approximately £89.4 billion in rent in 2022. This is the highest figure since records began and represents a rise of 2.6% since 2021.

Total rent expenditure has accelerated since the year 2000 when the total stood at just over £27.5 billion. From here, the total cost has increased every year by rates of between 0.4% and 11%.

A breakdown of the total expenditure on UK rent between 2000 and 2022

Line graph showing the total spend on UK rent by year between 2000 and 2022

The biggest year-on-year increase occurred between 2005 and 2006, when total rental expenditure rose from £37.3 billion to £41.4 billion (+10.9%). Though growth slowed considerably from 2017 onwards, the latest figures for 2022 represent the biggest annual rise since 2016, when total expenditure rose by 4.3%.

A survey from Bloom Digital gathered tenant perception responses from over 200 landlords in the 2021-2022 financial year. The report found UK private tenants in the lowest income bracket are most likely to be dissatisfied with their rental living conditions. Just under three-quarters (72.6%) said they were satisfied. This is over 6% lower than the median total (79.3%) and nearly 13% lower than the satisfaction rate of tenants in the highest-income category (85%).

A breakdown of the customer satisfaction rates of private tenants by income group

Comparative bar chart showing the satisfaction rates of low cost private renters and low cost home owners by income quartile.

The same tenant satisfaction survey found that private renters are more likely to be satisfied with their homes than those living in low-cost home ownership. Less than half (43.7%) of UK homeowners in the lowest income group were satisfied with their living situation. This is nearly a third (30%) less than tenants in the same income band.

Satisfaction rates increased to more than three-fifths (61.5%) in the highest group But this was still around a quarter (24%) lower than private tenants in the same bracket.

UK private rental stats found that tenants in the lowest income bracket are more likely to be dissatisfied with a range of household services. That’s in comparison to those in the highest bracket.

Around 4 in 10 (40.7%) tenants in the lowest income range were satisfied with their landlord's approach to complaints handling. This was around a quarter (25%) lower than the satisfaction rate for those in the highest income group (65.1%).

A breakdown of the customer satisfaction level of tenants by income group and type of service

Lower income group Median Upper income group
Satisfaction that the home is well maintained (%)
70.2%
72%
77.4%
Satisfaction that the home is safe
79%
82.9%
87.1%
Satisfaction that the landlord listens to tenant views and acts upon them
56.6%
64.2%
72%
Satisfaction with the landlord’s approach to handling complaints
40.7%
55.9%
65.1%
Satisfaction with the landlord’s approach to handling antisocial behaviour
47.4%
60.4%
69%

(Source: Bloom Digital)

Just under half (47.4%) of UK renters in the lowest group were satisfied with their landlord's approach to antisocial behaviour. That’s around 21% less than those in the highest income bracket.

Satisfaction rates were higher in the lowest group when it came to home maintenance (70.2%) and safety (79%). But these figures were still considerably lower than the satisfaction rates of tenants in the highest bracket (77.4% and 87.1%, respectively).

Private rental statistics from Citizens Advice found that around 1 in 10 (9.44%) UK tenants were behind on their rent in January 2022. This equates to almost 425,000 private renters across the UK.

Of the people in rental arrears, the average amount owed stood at £937. The same report estimated that it would take the average renter around 9 years to pay back this debt, based on average earnings and expenditures.

What is the difference in spending between homeowners and private tenants?

Statistics from the private rental market found that private tenants spend 13% more of their income on rent than owner-occupiers do on their mortgage. The average owner-occupier spends less than a fifth (18%) of their monthly salary on mortgage payments, compared to nearly a third (31%) for those privately renting.

A breakdown of the average amount of monthly income spent on rent by home type

Comparative house graphic showing the average percentage of monthly income spent on rent by owner-occupiers and tenants.

Citizens Advice found that owner-occupiers are 26% more likely to have savings than private tenants. Over 4 in 5 (81%) homeowners had savings, compared to just over half (55%) of private tenants.

Home type Percentage of people that have savings
Owner-occupier
81%
Tennant
55%

(Source: Citizens Advice)

The latest housing report from the ONS found that the UK average property price was £287,782 in October 2023. This was a decrease of over £3,000 (-1%) from the same time in 2022 and a fall of nearly £5,000 (-1.5%) from October 2023.

Which English region has the highest average house price?

As of October 2023, London had by far the highest house prices of anywhere in England. With an average cost of £515,504, London residents paid at least a third (32%) more, on average, than anywhere else in the UK.

A regional breakdown of the average UK house price in October 2023

Shaded map graphic breaking down the average UK house price by region in October 2023.

The South East has the next highest house prices, with an average cost of £389,223 around 12% more than the East of England – the third most expensive region.

There is a significant divide between the north and south for UK house prices. The most expensive in the north (North West) is around a third (35%) cheaper than the least expensive in the south (South West).

The North East typically has the lowest UK house prices, with an average cost of £161,237. This makes the North East the only region with average house costs below £200,000. That’s around two-thirds (69%) less than the average property price in London.

Rental yield refers to the percentage of mortgage value a landlord can expect to receive from a property in rent over a year. The latest private rental market statistics found that the average gross rental yield in the UK was 5.49%, as of 2023.

This is based on the average buy-to-let property costing £262,288 and the average buy-to-let rent standing at £1,201 per month.

A regional breakdown of the average rental yield on buy-to-let properties in 2023

Shaded map graphic breaking down the average rental yield by UK region in 2023.

Buy-to-let landlords in the North East can expect the highest rental yield on average, at 7.34%. This means that landlords in the North East typically make back over 7% of their entire buy-to-let mortgage from 1 year of rent.

Following the North East was Scotland, with an average rental yield of 7.32% – 0.8% higher than any other region. This made Scotland the only other place to record an average rental yield above 7% in 2023.

Southern regions typically recorded lower percentages than those in the north, with every southern area having a rental yield below 6%. The average rental yield in London was the only one below 5%. The capital’s average is 4.92%, around 2.4% lower than the North East.

Recent private rental statistics show that the gap between house prices and rental payments widened between 2017 and 2023. The house price-to-rent ratio tracks the difference in growth between house prices and rental prices. Any figure above 100 signals that house prices are growing at a faster rate than rent.

As of Q4 2022, the UK house price-to-rent ratio stood at 131.7 – the highest figure on record. This means that house price growth in the UK is outpacing rental growth by nearly a third (32%).

A breakdown of the UK price-to-rent index between 2017 and 2022

Area graph showing the trajectory of the UK price-to-rent index between 2017 and 2022.

The latest UK price-to-rent figures continue an upward trend that started in Q2 2015, when the ratio stood at 99. This was the last time rental prices were growing faster than house prices. From here, the ratio has grown steadily, surpassing 110 in Q4 2017 (110.7) before exceeding 120 in Q4 2021 (120.1).

The latest figures mean that the house price-to-rent ratio has climbed by almost a quarter (23%) in the period between Q1 2017 and Q4 2022.

Looking to make the move from renter to homeowner? Find out what you need to know about first-time buyer mortgages and 90% LTV mortgages.

Holiday and vacation rental statistics

The ongoing cost of living crisis has seen a rise in the number of homeowners listing second homes and spare rooms on Airbnb.

With the average hotel in London now costing over £170 per night, Airbnb has grown in popularity for holidaymakers. These often offer a cheaper alternative for vacations and short-term lets.

A recent report on Airbnb usage in UK cities found that:

  • There are over 223,000 active Airbnb listings in the UK
  • On average, only 11% of London’s listed Airbnbs are occupied – less than other major UK cities like Edinburgh (14.9%), Glasgow (16.4%), and Manchester (13.7%)
  • Airbnb hosts make £3,100 per year, on average

The same report found that Airbnb has helped prevent eviction or foreclosure for around 3% of hosts in the UK. It’s also providing accommodation for 8.4 million people throughout 2022.

The latest private rental market statistics anticipate further growth in rental prices between 2023 and 2027. The same statistics predict a 4% increase by the end of 2023, followed by an identical level of growth in 2024.

A breakdown of the forecasted annual change in UK residential rent prices between 2023 and 2027

Year Annual Price Growth (%)
2023
4%
2024
4%
2025
3.5%
2026
3%
2027
2.5%
Cumulative 2023-2027
18.2%

(Source: Statista)

Annual rental growth is projected to slow in 2025 (+3.5%) before falling below 3% by 2027 (+2.5%). If these projections are correct, the UK’s average rental costs could rise by 18.2% between 2023 and 2027. This equates to a year-on-year rise of around 3.6%.

How much rent should I charge?

The amount of rent you should charge a tenant can vary on many factors, including:

  • The cost of the home
  • The region/location of the property
  • The rental costs of homes within the same area
  • The size and facilities of the home
  • The cost of bills
  • The number of tenants

These factors mean the ideal cost can vary considerably. But a common theory is that your rent should be between 0.8%-1.1% of the property’s purchase price. For example, if the home was bought for £100,000, the monthly rent should be between £800-£1100.

Do house prices go down in a recession?

Typically, UK house prices tend to slow or even fall following a recession. Long recessions cause the wider economy to shrink, resulting in higher rates of unemployment and a fall in house prices.

For example, the 2008 global economic crisis resulted in the average value of UK homes dropping by around a fifth (20%).

What is the private rented sector?

The private rented sector refers to any home owned by a landlord and leased to a tenant. This doesn’t include government-owned leases like social or council housing.

Will rent go down in the UK in 2024?

Rent rises in the UK are expected to slow in 2024 after sharp rises over the previous 2 years. A report from Zoopla in December 2023 predicted that the annual growth rate of rent will fall by 50% in 2024.

However, it’s not known whether this will result in a rental decrease or just a slowing of the annual increases.

Can a private landlord kick you out?

For a private landlord to legally evict you during a contract without notice, they must have a good reason. For example, if you’ve not paid your rent or have damaged the property, the landlord may have grounds for an eviction. Even in these situations, however, a landlord will have to acquire a court order to legally evict you.

A landlord doesn’t need a reason to evict you once a rental contract has expired, provided they’ve given you the correct notice. But, they would still need to acquire a possession order to make you leave the property.

Can a landlord increase rent every year?

Yes. If you’re on a rolling month-by-month contract, your landlord can increase your rent annually. However, they cannot usually do so more than once a year without your consent.

If you’re on a fixed-term contract, then the landlord cannot legally increase the rent mid-contract without your agreement or a clause in the contract. For this reason, It's important to check the terms of your rental contract.

If you’re looking for expert advice on how to get on the property ladder, explore our guide on how to save for a house.

Arrears

Arrears refers to cash that someone owes that should have already been paid. In rental terms, this would mean a tenant is behind on their agreed monthly payments.

Buy-to-Let

Buy-to-let is a specialised mortgage type for buyers looking to rent out the property they’re purchasing.

Private rental

Private rental refers to the renting of accommodation from a private landlord or anybody not associated with a government organisation or council.

Short-term letting

Short-term letting is when a residential property is rented out for less than 90 days. This includes renting out your property on sites such as Airbnb.

Tenant

Tenant refers to anyone who legally occupies a property rented from a landlord.

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