Business
CROSS-SPECTRUMBROAD COVERAGE
Rising mortgage costs push more Britons into a tightening rental market
Higher mortgage rates are forcing prospective buyers to stay renters longer, while limited new rental supply is driving rent growth toward 4-5% by year-end.
As borrowing becomes more expensive, many would-be homeowners are remaining in the private rental sector, extending demand for rented homes. At the same time, the flow of new rental properties has not kept pace with previous levels, tightening the market. Annual rent increases reached 2.6% in July, lifting the average monthly rent to £1,340. Analysts expect rent growth to climb to between 4% and 5% before the year closes.
Why it matters
Rising rents affect household budgets and could deepen the UK housing affordability crisis.
In this story
mortgage ratesrental marketrent growthhousing affordabilitylandlord investmentUK rentsregional markets
