Rent prices across the UK grew by 8.3% on an annual basis in the final quarter of 2021, shows a new report from Zoopla.
Taking London out of the picture, rents went up by 7.5% and just in the capital itself, rents increased by 10.3%.
The average rent price across the entirety of the UK now sits at £969, which is a new high.
Zoopla points out that the “large falls” in London rents during 2021 mean the average price in the city is up by only £18 per month since March 2020
It adds that across the UK, the proportion of a single earner income being spent on rent is 37%, in-line with the 10-year average, which comes to 36%
However, rental demand was up 76% in January 2022 compared to the start of the year between 2018 to 2021, driven by a return to the city.
And when measured over the last five years, cumulative rental growth stands at 12%.
However, Zoopla believes that demand for rental properties will drop as the year progresses, due to seasonal trends, “and also because of more renters deciding to stay put in the face of higher rents, putting less acute pressure on supply.”
It expects rental growth to slow to 4.5% outside of London and 3.5% inside London by the end of the year.