Rents to rise yet again in 2022 forecasts Zoopla

The latest UK Rental Market report from Zoopla shows average UK rents are up 4.6% on the year at the end of September, after climbing by 3% in Q3 as demand rebounded in city centres and strengthened around the country.

Average UK rents excluding London are up 6%, the highest level in 14 years.

Gráinne Gilmore, Head of Research, Zoopla, comments: “The swing back of demand into city centres, including London, has underpinned another rise in rents in Q3, especially as the supply of rental property remains tight. 

The long term undersupply of rental properties across the country is expected to support rental growth into 2022, says Zoopla.

In addition, the supply shortage coupled with the strength of the employment market which, despite the pandemic, is set to remain robust, will in turn support demand and sustain rental growth.

The portal says the level of rental demand might ease in the near term in line with seasonal trends, but demand levels will remain higher than usual, especially in city centres, where there is an element of pent-up demand being released.

On the supply side, rental stock will remain tight, amid lower levels of investment into the sector by landlords, and this will underpin rental pricing.