East Midlands rents are forecast to increase at a faster rate than every other region between now and 2030, property firm Zero Deposit has predicted.
In the region the average monthly cost of renting across the region is expected to climb by a staggering 41% by 2030, from £747 in 2023 to £1,054 in 2030.
Dwindling stock is behind this predicted increase. PRS stock as a percentage of all dwellings within the East Midlands has declined from 18.7% to 17.3% in today’s climate (2022 – latest available) – a drop of -1.4%.
Expected growth in the East Midlands compares to an average predicted rise of 16% across England, bringing typical rents to £1,150 per month.
Sam Reynolds, chief executive of Zero Deposit, said: “Since 2013, the average rent across England has increased every year with the exception of 2017 and 2020 and the average tenant is now paying 37% more than they were a decade ago, an increase of £266 more per month.
“This is a huge jump and one that simply hasn’t been matched by growth in earnings, with figures from the Office for National Statistics showing that wages have increased by just 30% during the same time period.
“The imbalance between the two is putting tenants under an even greater degree of financial pressure, both on a month to month basis, but also with regard to the initial deposit required to secure a rental home.
“The primary issue driving rental value growth is the insufficient level of stock available to quell the overwhelming demand for rental homes. This demand has only grown as the cost of homeownership has spiralled and we’ve seen a greater acceptance of long-term renting as a lifestyle choice.
“The government has done little to address this issue and if they continue to sweep it under the rug, the reality is that rents will only increase further over the coming years.”
London would remain by far the least affordable area of the rental market, with a forecasted 12% increase expected to add £234 to the cost of renting, pushing the average monthly rent to £2,107.