Cost of renting jumps by over £3k in just three years

The cost of renting has soared dramatically over the past three years, according to Zoopla’s new report on the rental market, published today (11 December).

The report found rents for new lets have gone up by a staggering £270 per month compared to three years ago.

That’s a rise of £3,240, or 27%. Meanwhile, earnings growth has lagged behind at only 19% for the same period.

Key findings from the report

• Rents for new lets have risen by £270 per month since 2021.
• This adds up to £3,240 – a 27% surge compared to three years ago.
• Average rental costs have increased by 27%, while earnings have only grown by 19%.
• Average UK rents are expected to rise by an additional 4% in 2025.
• Annual rent inflation is currently 3.9%, the lowest it has been in three years.
• Northern Ireland sees the fastest rent growth at 10.5%, followed by the north east at 8.7%.
• Enquiries for rented homes are 31% higher than pre-pandemic levels.

The impact on renters

It’s clear that many renters are feeling the pinch, especially those already struggling to make ends meet.

As Ben Twomey, chief executive of Generation Rent, said, “everyone needs a safe, secure and affordable home.”

In reality, renters across the UK are facing soaring rents that far exceed their earnings.

A call for action

Twomey said the government’s renters' rights bill is a positive step towards offering more protection from eviction.

But he says the bill doesn’t have enough measures to support renters with the escalating costs of renting.

“The government must act urgently to slam the brakes on rising rents, whilst unfreezing the local housing allowance rate will protect families on low incomes from poverty and homelessness.”

Are you struggling to pay your rent?

What to do if you’re finding it difficult to cover your housing costs:

Talk to your landlord

Try and maintain a good relationship with your landlord by being honest about the difficulties you’re facing.

It can be awkward talking about money problems, but your landlord can’t help you if they don’t know what’s going on.

Payment plan

See if you can agree a payment plan for any rent arrears you have.

Work out a budget to see what’s affordable each month for you to pay back to your landlord.

Check your benefits entitlement

Make sure you’re not missing out on money you’re entitled to by using our free benefits calculator.

Household support fund

Local councils also have money set aside to help people struggling with the rising cost of living.

This money is provided under a scheme known as the household support fund. 

Contact your local council to see what’s available in your area. 

Prioritise your debts 

Rent is a priority debt, so you should pay this before things like credit cards, personal loans and buy now pay later.

Find out more about how to deal with priority and non-priority debts. 

Get free debt advice

If you’re struggling to pay your rent, you should get debt advice as soon as possible. 

Our free debt advice is available online and over the phone. We’ll run through your finances and then let you know what help is available.

Maybe you just need a hand with budgeting. Or maybe you’d benefit from a debt solution.

Debt solutions can reduce your monthly debt repayments and even write off some of what you owe. Of course, you’ll need to weigh this up against the fact your credit rating’s likely to be affected. But we’ll run through all the info you need on your various options.

All of our advice is free and some debt solutions are also free. For others, there’s a fee.