Manya Rathore
Research expert covering India
Rental market in the UK - statistics & facts
The UK private rental market has grown notably over the last 20 years, with declining housing affordability pushing rents upward. The value of rental expenditure paid by tenants has tripled since the early 2000s, with the average rent soaring since the COVID-19 pandemic. Renting is most popular among young adults early in their professional lives, though a significant portion of the population continues to rent well into their 40s.
According to a November 2024 forecast, rents will continue to rise until 2029, though slower. With many people unable to buy a home due to the lack of affordable housing and high mortgage interest rates, demand for rental housing is expected to remain strong.
The cost of renting
Rents in the UK have continuously increased over the last decade, with growth accelerating since 2021. In January 2025, the Index of Private Housing Rental Prices (IPHRP) rose by 8.7 percent, which was only slightly below the highest increase on record. Renters in England paid close to 1,400 British pounds in monthly rental costs, with London surpassing 2,200 British pounds. Property prices grew even faster, resulting in a narrowing gap between the cost of buying a house and renting. With wages struggling to keep up with rising living costs, Brits spend an increasing share of their income on housing. That is especially problematic for those eager to get on the property ladder, as rising rents affect households’ ability to save up for a deposit. In January 2025, the rent-to-income ratio in most of the UK’s regions exceeded 30 percent.Profile of English renters
Out of approximately 24.4 million households in England, over one-third were private or social renters. Private renters constitute the most diverse tenure group in terms of income and a growing share of the population. Renting is most common among couples without children and singles, but not only. Approximately one-third of private renter households were a couple or a lone parent with dependent children. According to a 2024 survey, private renters had spent less than five years in their current residence, five times less than people who own their home outright. However, there is a trend that renters stay longer – a result of the tightening supply of rental properties and homes for purchase.According to a November 2024 forecast, rents will continue to rise until 2029, though slower. With many people unable to buy a home due to the lack of affordable housing and high mortgage interest rates, demand for rental housing is expected to remain strong.
