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Annual UK Rents Soar by £3240 in 3 Years

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    Liverpool Rents Up 6.5% Annually

    According to Zoopla’s latest rental market report, the average monthly rent for a new let in the UK is £1,270 as of October 2024.

    Rents have increased by an average of 3.9% in the last year. This is the slowest rate of growth in 3 years after record-busting rises were recorded in 2021 and 2022.

    In October 2023, the annual increase was a huge 9.1% as supply-demand imbalances pushed up rental costs at an unsustainable rate. The growth rate has slowed to a more stable and sustainable level, but rents are still expected to keep climbing as the mismatch between supply and demand continues.

    Zoopla’s data shows that new lets are £270 more expensive per month compared to 3 years ago, meaning the annual cost of renting has soared by £3,240 (27%) since 2021.

    The North West Region Is Forecast to See the UK's Highest Five-Year Capital Growth Rate in 2025 and Beyond!

    Read more about this in our guide to the latest Savill's Residential Property Market Forecast and learn which UK regions to consider for buy to let investment.

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      North England Outperforms South for Rental Growth

      London has the highest average rent of any region, averaging at £2,190 per month. However, the slowdown in growth is also being led by London, as this region had the lowest annual increase in rent. Rents in London are 1.3% higher over the last year, down from 8.7% annual growth a year ago.

      However, more affordable areas, such as the North of England and Northern Ireland, are still recording lofty rental rises. This suggests that renters in these regions have not hit an affordability ceiling to the same degree as in London and other southern cities. The average UK increase in rents is much higher when excluding London — sitting at 5.1%.

      Liverpool had one of the highest increases of major UK cities, with a yearly jump of 6.5% in October. RWinvest targets high-demand cities such as Liverpool to match investors with the best property investment opportunities in the UK market. Our latest off-plan launch, SoapWorks, is located in the Pumpfields regeneration district, which is expected to see strong rental growth in the coming years. This is due to its ideal location, top employment opportunities in Liverpool’s expanding business district, and proximity to its top universities.

      The UK Property Market in 2025 - What's Predicted?

      Learn whether 2025 is a good year to invest with our key predictions for the year ahead, as well as a look back on 2024 and how the market performed. Download your essential guide now!

      What is the Outlook for 2025?

      Zoopla forecasts average rents for new lets to rise by 4% throughout 2025. This is a higher rate than the 2.5% growth they have predicted for house prices, and they expect rents to outpace capital value growth for the next 3 years, providing a boost for rental yields.

      According to their report, they anticipate higher growth from areas where rent is cheaper as there’s headroom for above-average growth. Rental inflation in London is projected to lag behind the UK average due to affordability constraints.

      Continuing rental price growth is likely as Zoopla also predicts that there will be no major expansion in the supply of properties in 2025, and the supply-demand imbalance will persist. The number of homes available to rent is currently higher than last year but still lower than pre-pandemic levels in all UK areas apart from the East Midlands.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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