Zoopla’s latest report has revealed some concerning statistics for the nation’s renters. Average monthly rental costs are now higher than mortgage payments.
The Bank of England has analysed payments made by renters and homebuyers between 2022 and 2025. They discovered that the cost of an average monthly rent in the UK rose by £221 during that time. However, the rise in the average monthly mortgage payment came in lower, at £218.
A monthly rent payment is now £1,283 on average, while the average outlay for mortgaged homeowners is £1,154. It seems that renters’ budgets are being squeezed ever tighter: that’s why our letting agents in Newbury Park and Letting agents in Ilford have shared ideas on how to save money in today’s lettings market
What’s behind recent rent rises in the UK?
One of the main reasons behind the nation’s soaring rental costs is the shortage of properties to let. Competition for homes has inevitably led to an increase in rent prices.
Despite rising demand, the number of properties available to rent has failed to grow since 2016, and the scarcity of rental stock is even more acute in the capital. In central London, expensive rents have forced renters to move further out, pushing up the cost of rent in more affordable boroughs. For example, rents in Ilford have risen by £400 over the last three years.
The surge in rental demand began in the wake of the pandemic. A strong labour market, together with an upswing in the number of people migrating to work or study, helped to push rents higher.
The interest rate spikes of 2022/23 also prevented many first-time buyers from gaining a place on the property ladder, so potential homebuyers were forced back into renting
Why are fewer landlords investing in buy-to-let?
Another problem that affects the supply of rental properties is landlords’ reluctance to invest. Many are, in fact, selling up: in the first three months of this year 15.6 per cent of homes listed for sale were former rentals.
This is because rising mortgage interest rates, higher maintenance and repair charges and hikes in council tax have affected profitability. Landlords have also expressed fears
about stricter legislation due to come into effect next year, under the Renters’ Rights Bill.
And the good news?
Thanks to lower levels of migration and new measures making mortgage finance more accessible to first time buyers, demand is now beginning to slow.
This month the process has been helped by a further drop in the base rate, which affects the cost of mortgages. On 7th August the Bank of England cut the rate by a further quarter per cent, to just 4 per cent.
When mortgages become cheaper, first-time buyers find it easier to enter the housing market, while landlords are more likely to invest in buy-to-lets. This could lead to more availability of rental properties and, eventually, a levelling off of high rent prices.
How can I save money now?
Growth in UK rent prices is now at its lowest rate for four years. But while prices may continue to stabilise, no-one expects a significant drop.
There are, however, a few steps you can take to make the most of your budget:
1. Register with a trusted lettings agent
A good lettings agent with deep local knowledge and effective networks will be the first to hear when a well-priced rental property becomes available.
When you sign up with a proactive agent, you’ll be notified right away when a property within your budget range is listed.
2. Watch out for properties that have lingered on the market
There may be a reason why the property hasn’t been snapped up. Is the advertised rent too expensive? If the property has been listed for some time (the London average is around 16 days) it’s worth asking whether the landlord will consider a rent reduction.
With luck you’ll be asking just at the right moment, when the landlord is ready to negotiate.
3. Be flexible about your requirements
If you can build in a little flexibility, particularly when it comes to location – you could increase your chances of securing a good deal.
You’ll be surprised how much you can save by looking at properties in more affordable areas, just outside desirable rental property hotspots.
4. Ask the right questions
It’s easy to get carried away when you view a great property at what appears to be a reasonable price. However, dig a little deeper and you could find there are unexpected costs.
These could include service charges for communal areas, repair and maintenance responsibilities and even fees for late rent payments. Ask the landlord (or the landlord’s representative) if there are any additional fees or charges you should know about.
Where can I get expert advice?
Whether you are buying a home in East London or seeking an affordable rent, good local knowledge is essential. At Oakland Estates, we have been matching homebuyers and renters with their ideal properties for over 35 years.
Our highly trained lettings staff go the extra mile to offer great customer service. We’ll fit around your busy schedule, arranging viewing appointments until 8 pm on weekdays and up to 5 pm on weekends. If you’d like to know more about renting a property in East London, why not get in touch?
We’d love to help you find your perfect new home at a price that suits your budget.
Get in touch via 020 3972 7341 or email info@oaklandestates.co.uk to share your plans with us.
Meanwhile, if you’d like to find your dream home or properties to rent in Ilford, wanstead, Newbury Park, Barkingside and surrounding areas, check the links below
Properties for sale in Ilford and Barkingside
Properties to rent in Ilford and Barkingside
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