Skip to content
Tuesday 18 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,728.04
+0.07%
DAX
26,128.36
-0.80%
CAC 40
8,509.36
-0.82%
STOXX 50
6,468.17
-0.95%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Monday 08 April 2024 6:00 am  |  Updated:  Sunday 07 April 2024 3:18 pm

Rental crisis to get worse as earnings ‘won’t keep up’ with London flats

By: Ali Lyon

Chief reporter

Add as a preferred source on Google
An LGIM boss has lambasted what he describes as "unscrupulous" buy-to-let landlords, accusing many of providing poor housing for tenants.
An LGIM boss has lambasted what he describes as "unscrupulous" buy-to-let landlords, accusing many of providing poor housing for tenants.

Rents across the country are likely to continue to rise over the coming years, outpacing any growth in earnings, according to figures out from a leading think tank.

The analysis from the Resolution Foundation warns that rents could rise by as much as 13 per cent in the next three years, even though the average cost of new rental agreements has already grown by 18 per cent since the start of 2022.

The market rallied as the country recovered from the coronavirus pandemic, when evictions and repossessions were outlawed. It was then further boosted by consecutive years of rising wages, up an average of 13 per cent since January 2022.

Rents have adjusted to reflect these two factors, according to the study, and are now close to their pre-pandemic high relative to income. But even though this catch-up is complete, and wage inflation has cooled, it will be years before the effects of this reset are felt throughout the entire private rental sector.

Earlier this year, London rents hit a record high, prompting warnings the market had hit its “affordability ceiling”.

Cara Pacitti, senior economist at the Resolution Foundation, said: “Millions of families agreeing new tenancies across Britain have faced surging rents in recent years as we have emerged from the pandemic.

“With more families renting privately, and renting for longer, these rent surges are a bigger problem for Britain and require bolder solutions from policymakers.”

Ben Beadle, CEO of the National Residential Landlords Association, said: “Whilst wage growth plays a role [in rising rents]. a key driver is the balance between supply and demand.

“Ultimately, a healthy rental market is one in which there is a supply of rented housing to meet ever growing demand. Ministers need to act to support the sector.

The findings come as the government pushes through its Renters Reform Bill, which seeks to bolster tenants’ rights.

However, questions remain over whether the Bill will be ratified before a general election, after reports revealed it had been “put back indefinitely” due to Tory backbenchers’ unease at the some of its provisions.

Read more

Student housing giant Unite faces £400m loss amid property value slump

Unite Students building with brick facade and blue windows, city skyline in background under blue sky

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Markets & Economics

Categories

  • Property
  • Economics

Related Topics

  • Coronavirus
  • property market
  • rent
  • UK inflation

Trending Articles

  • As it happened: FTSE 100 drops as oil prices rise after Trump makes Hormuz threat

  • Jobless Banquet: Youth unemployment surge ‘sends Neets to KFC’

  • US bond market jitters spark UK economy recession warning

  • Monzo chair makes early exit after boardroom rift

  • Aldi boss wades into supermarket ‘price-gouging’ row

More from Morning Wire

  • Student housing giant Unite faces £400m loss amid property value slump

    Property
    Unite Students building with brick facade and blue windows, city skyline in background under blue sky
  • Would a Burnham premiership deepen the North-South housing divide?

    Property
    Andy Burnham returns to Parliament
  • London doesn’t need more social housing, it needs more housing full stop

    Opinion
    Luxurious mansions surrounded by manicured gardens in an upscale residential neighborhood, highlighting opulent housing tr...
  • ‘Good growth in every postcode’? Not in Greater Manchester

    Economics
    Andy Burnham speaking in Manchester, showcasing leadership and urban development initiatives in the city.
  • House prices rise as mortgage rates ease from Iran war highs

    Property
    Starmer plans to build up to 12 new towns.
  • Quality Pays: New Vrbo Research Finds Travelers Will Spend More on Vacation Rentals They Trust

    Business Wire
  • CoStar Data Shows London Dominates UK Office Development as Regional Pipeline Hits 20-Year Low

    Business Wire
  • Burnham vows to ‘get serious’ about slashing welfare bill

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking and gesturing during an interview
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook