Affordability limits have been reached in several regions of the UK, the Home property website suggests.
While some regions are still recording eye watering annual rises - for example, 18.0 per cent in Scotland and 11.1 per cent in the north east of England - other regions such as the south west are showing far lower rises.
Greater London is now one of the worst-performing regions at just 1.8 per cent annual rent growth due to a large increase in supply year-on-year.
Eight prime boroughs now show year-on-year falls, Home says, while the all-Britain yearly rise now coming in at 6.1 per cent on average - a drop from 9.7 per cent just a month ago.
Home says that the long term strength of the rental market remains a key factor in supporting the sales market.
High demand has meant letting is both a profitable and speedy alternative to selling, while the high cost of renting supports demand from homebuyers and investors alike.
Across Britain, rents are 49 per cent higher than they were five years ago.
In the sales market prices fell by 0.6 per cent during October in line with seasonal expectations.
The total stock of unsold properties on the market also fell, as is normal towards the end of the year.
Overall, despite higher borrowing costs, Home insists that the current market indicates clear similarities to that of pre-Covid years 2018 and 2019 in terms of price movements and stock levels, although lower Typical Time on Market for unsold property and tighter supply suggest a somewhat more robust marketplace and therefore greater price support.
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Rents will not continue to go up indefinitely. Once the affordability limit is reached and people cannot afford any more rent, rent rises will stall. Supply and demand. Simple
This is always what happens - rents go up, plateau, then wages catch up & off we go again! With other reports of wages now exceeding inflation, & with noting done to address the shortage of supply, this will only be a temporary lull.
Every time someone has said the prices of ‘ something’ cannot go up anymore…. They often do 💰💰🤔🤔 house prices are a favourite, but rent has more to go 😲😲
I agree Simon, I think there is more to be seen yet, wage growth this year has been almost as strong, and supply continues to drop, so a net effect on rising rents. As we saw in the pandemic when most called for rent holidays due to supposed cost of living pressures, tenants will have to consider sacrificing some of their luxuries like us homeowners have to likewise, maybe their mandatory annual holidays Ibiza in and Magaluf, their netflix subscription, the every friday night out with the lads/girls, the every saturday night meal with the other half, the newish car on finance, etc etc. DINKY tenants arent that hard up and they mostly fuel the demand.
Agree with both of you, however if interest rates have levelled off then the increases will not be so high.
As well as supply and demand costs to the Landlord will have an effect and if the rent does not stack up the property will be sold!
Oh what twaddle, of course rents will keep going up, just like everything else. Who remembers paying 70p for a Pint....
They might stagnant for a time but when you have an expected net migration figure next week of another 700,000 people and how many homes are being built what do you think that means?
I remember petrol for 3/6 a gallon.
Precisely, John, you are right. No new homes are built by the government, so rent needs to go up; it is not the landlord's responsibility.
Remember 92p for a Boddingtons in the Lane Ends, Happy Days..!
700,000 😱😱🆘🆘 is this what we may be seeing ?
Can't keep going up ?? watch this space of course they will
Until Labour get in and either introduce a rent cap or worse, rent controls.
I saw a poster on the Tube yesterday from the Mayor of London boasting that London is in a golden age of council house building. They have built 23,000 homes since 2018. It's laughable, that's a drop in the ocean. Across the country we need more than 300,000 new homes every year.
4600 a year is not really making a dent in the demand is it. Khan is the ultimate hypocrite.
With high demand from tenants and low supply of properties, there is enough high earning tenants to fill the high rental properties.
Rents don't have to keep going up as much as before in order to leave behind increasing numbers of homeless people. We're seeing it more and more on the media, people getting their section 21s or whatever provides the best newsworthy story. The media cite the section 21s as being the problem, and presumably the cure. Idiots. More housing is the only answer but that'll only happen when it's financially viable for private companies to stump up the capital. Labour are under the impression they can build 1.5m dwellings themselves lol. People believe them!!
I thought a remote organiser was something on your desk that you use for pens pencils and paper clips
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