This is the true extent of rent unaffordability for single earners right now
Written by Amy Beecham
Zoopla’s UK rental market report for 2022 paints a bleak picture for renters amid the ongoing housing and cost of living crises.
The average rent in the UK has officially increased by £117 a month since last year, reaching £1,078 per calendar month, according to Zoopla’s end-of-year market report.
As the cost of living continues to rise, rent now accounts for 35% of the average income of a single earner, the highest level for over a decade.
Rent unaffordability and the housing crisis have long been causes for concern.
Not only are private renters more likely to experience anxiety than homeowners, but they also have to contend with rogue landlords, bidding wars and ridiculous requests all making it harder for renters to find suitable homes. You only have to take a look at this recent Twitter thread for evidence of just how crazy things can get.
Sadly, things are due to get worse before they get better. Zoopla reports that there is no sign of the rental price slowing down any time soon due to a chronic supply and demand mismatch. Currently, the demand for properties is 46% above average, while the total supply is 38% lower.
What’s more, rents are stillincreasing fastest in the UK’s largest cities, with rents up 17% (or £273 per month) in London over the past 12 months, on par with major regional cities including Manchester and Glasgow. This is pushing many renters to look for smaller homes or consider sharing, with a jump in demand for one-bed flats resulting from renters seeking better value for money.
“A chronic lack of supply is behind the rapid growth in rents which are increasingly unaffordable for the nation’s renters, especially single-person households and those on low incomes,” says Richard Donnell, executive director at Zoopla of the findings.
“Renters are having to adopt a range of strategies to deal with rising rents. We have seen a rapid increase in demand for one and two-bed flats while some renters are now considering sharing a property to cover the cost of rent. Others may now need to stay at home with parents or relatives for longer until they can afford to rent privately.”
As for what might solve the problem, Donnell says that only a big increase in investment in the sector will ease the pressure on affordability and boost consumer choice. In the short term, however, they expect the growing unaffordability of renting to reduce rental increases in 2023 to 5%.
Bleak news, indeed.
Images: Getty
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