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Liverpool Rents Increasing Fast Despite UK Rental Growth Cooldown

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    Are We Past Peak Rental Inflation?

    Zoopla has recently published research carried out for the BBC showing that the recent boom in rent rises for new lets seems to be coming to an end. However, some areas are not following this trend of slowing rental growth, with certain cities experiencing larger increases than previously seen.

    The data shows that overall, UK rents are climbing at their slowest pace since 2021.

    Rents for new lets have increased by 5.7% over the last year, and now the average monthly rent is £1232. But in the previous 6 months, Zoopla recorded a rise of just 1.6%. This slowdown has been attributed to affordability pressures. Zoopla forecasts that the average rent will have risen by 3-4% by the end of 2024.

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      Liverpool and Bradford See Fast-Rising Rents

      While this projection represents a drop from the record rises seen in 2022 (11%) and 2023 (8%), these rapid rental increases were unsustainable and on-trend growth suggests a more stable and healthy rental market. Zoopla states that the rental market has moved from ‘red-hot’ to still ‘hot’, as rents are increasing and each available rental home attracts 17 enquiries – double the pre-pandemic average in 2017-19.

      Zoopla’s data also shows that certain areas are not seeing slowdowns in rental inflation, as rents are rising fastest in accessible suburbs, larger cities, and places where rental properties still offer some value for money.

      Liverpool had the fastest-growing rent over a six-month period, rising by over 4% in the first half of 2024. This is up from last year when an increase of just over 3% was registered in H1 2023. Bradford had the next highest growth, with rental inflation around 4% at the end of H1 2024.

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      Rental Inflation Slowdown Led by London

      Zoopla states that London’s average monthly rent is £2172, the most expensive in the country and 70% higher than the UK average.

      Due to this, affordability is becoming a constraint on rental inflation, and the report reveals that average rents fell by more than a third of London boroughs in the first six months of this year. According to the Zoopla report, there is another reason for this apart from the affordability ceiling. Corporate investors are acquiring new rental homes, which is giving a boost to supply in London.

      Rental inflation has slowed across all areas of the capital. However, higher growth rates are still recorded in outer London, led by areas such as Merton and Havering, where rents are below the London-wide average.

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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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