Today’s topic is a sensitive one. We are discussing rental growth and how rental prices have increased considerably since COVID-19.
In the past 5 years, mainly due to a mix of high rental demand, a huge shortage in rental properties and an increase in costs that landlords are experiencing, rents have increased in Lancaster by an average of 22.2%.
That saying, in the same period, the minimum living wage has also increased by 32%. The problem is, that everything else has also increased hence affordability is now increasingly critical and rental growth rates are expected to moderate.
UK annual rental growth is currently at 7.9%, however, this has moderated slightly from highs of 10.4% in June 2023.
Renters paid an average of 33.3% of their income on their rent in April. Renter affordability has weakened in all UK regions over the last year and this is a concern to us. It is something we look at closely.
Rental growth will likely still be high in 2024, although down from the last few years, but beyond 2024 expect rental growth rates closer to 3%, which will be a relief to many local renters who are already struggling to afford to live.
At JDG we always try to be fair. Fair to our landlords whose properties we look after and fair to our residents, that occupy these homes. It’s one of the reasons why we are the only estate agents in Lancaster and Morecambe to have been awarded with an Ethical Estate Agent status, something which we are immensely proud of.
If you are a landlord and looking for an ethical estate agent in Lancaster or Morecambe, please get in touch. At JDG we vow to always do the right thing.
Thanks for reading
Josh
