UK households who rent face £200 being added to payments

Rents are set to rise by £200 a month over the next five years as the Labour Party government policies take hold. New data shows the average UK rent will rise from £1,122 today to £1,320 in 2029, according to forecasts by estate agent Savills.

Private tenants in London are set to see their monthly rents increase from an average of £1,680 today to £1,919 by the end of the current Parliament. “High demand and low supply have been the influence behind the significant rental growth seen over the past few years. At a national level, this pattern looks set to continue with rents expected to rise above incomes again,” says Guy Whittaker, research analyst at Savills.

“It is challenging to see where an increase in rental supply will come from in the next couple of years. The increase to the existing Stamp Duty Land Tax surcharge for second homes will likely dampen demand from new buy-to-let investors, and it will prevent some existing landlords from expanding their portfolios.

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“The potential requirement to upgrade EPC [Energy Performance Certificate] ratings by 2030 may see some leave the sector altogether, particularly in markets where the upgrades required would exceed an entire year’s rental income. In those cases, it may make more financial sense to sell.”

“Slower rental growth through 2023 has led to a slight easing of affordability pressures in London. We expect that this trend will continue in the near term with rental growth of 2.5 per cent in London in 2025, against income growth of 2.9 per cent,” Whittaker also went on to say.

He added: “However, we expect to see more landlords exit the market, further eroding supply, and affordability will once again take a backseat. This would mean that rental growth could be stronger than we have currently forecast.”