Rents rise 2.6% in July, with warnings of 5% increase by year end
Official figures show rents up 2.6% in July, with Zoopla warning of up to 5% growth by the end of the year as supply lags.
The Full Story
A plain summary built from the channels that reported this story.
Rents rose by 2.6% in July, according to new figures, with analysts warning that tenants could face increases of up to 5% by the end of the year. The property website Zoopla said higher mortgage rates were causing more people to rent for longer, while a lack of available homes added to pressure on the market.
The data, which measures average rents on new tenancies, marks a reversal of a recent slowdown in rental growth. Kevin Peachey, the BBC's cost of living correspondent, said the report was 'unhappy reading for renters' because it reversed a trend of slowing increases.
Zoopla attributed the rise to stronger competition among tenants, driven by higher mortgage costs that have kept would-be buyers in the rental market. But the key factor, according to the firm, was a shortage of supply.
'That's why Zoopla is saying that average rents likely to go up to four or 5% by the end of the year,' Peachey said. That would be bad news for renters already struggling with stretched budgets.
Landlords, meanwhile, are looking for confidence to invest in properties. According to the report, they are likely to turn their attention to the chancellor's budget next month for measures that could encourage investment.
The figures come as other pressures on household finances continue, though the rent story stands on its own as a growing concern for tenants across the UK.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | BBC One |
|---|---|
| Higher mortgage rates are leading to longer rental periods and increased demand for lettings. | |
| New tenancy rents increased by 2.6% in July. | |
| Zoopla warns rents could rise by 4% to 5% by the end of the year due to lack of supply. |
Channel Perspectives
What each channel focused on, with key quotes.
The BBC One West segment focused on the human impact of rising rents, highlighting the reversal of a recent slowdown and the pressures on renters. It also gave a clear explanation of the causes, including higher mortgage rates and a lack of supply, and pointed to political implications for landlords awaiting the chancellor's budget.
- “the latest figures show the cost of rent went up by 2.6% in July, and there are warnings it could increase by as much as 5% by the end of the year.”
- “So Zoopla are saying that in July there was a rise of 2.6% a year on the average rents on new tenancies.”
- “That's bad news for renters, of course. And landlords, well, they're going to be looking for more confidence, more confidence to invest in properties.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.