Rents could soar by up to 41% by 2030, new study warns

Renters in England could see rents rising by up to 41% per month by 2030, a new study reveals.

Zero Deposit analysed historic rental market data from the Office for National Statistics (ONS) to forecast what the average cost of renting could look like.

It found that the average tenant across England is currently paying £994 per month in rent, which has risen by 5% in the last year and 37% over the last decade.

‘Average rent across England has increased every year’

The firm’s chief executive, Sam Reynolds, said: “Since 2013, the average rent across England has increased every year with the exception of 2017 and 2020 and the average tenant is now paying 37% more than they were a decade ago, an increase of £266 more per month.

“This is a huge jump and one that simply hasn’t been matched by growth in earnings, with figures from the ONS showing that wages have increased by just 30% during the same period.

“The imbalance between the two is putting tenants under an even greater degree of financial pressure, both on a month-to-month basis, but also with regard to the initial deposit required to secure a rental home.”

He added: “The primary issue driving rental value growth is the insufficient level of stock available to quell the overwhelming demand for rental homes.

“This demand has only grown as the cost of homeownership has spiralled and we’ve seen a greater acceptance of long-term renting as a lifestyle choice.”

London is the most expensive region to rent in

The study reveals that London is the most expensive region to rent in, with an average monthly cost of £1,873, which has climbed by 12%, or £201, in a single year (2022 vs 2023).

However, the East Midlands is expected to see the largest increase in renting costs by 2030, with a forecasted 41% rise, adding £307 to the average monthly rent.

Zero Deposit attributes this to a dwindling level of private rented sector (PRS) stock in the region, which has declined from 18.7% to 17.3% of all dwellings since 2018.

The South West is also predicted to see a steep rise in renting costs, with a 39% increase by 2030, adding £382 to the average monthly rent.

The region has also seen a drop in PRS stock, from 19.4% to 18.1% of all dwellings since 2018.

The East of England is the third most affected region, with a forecasted 29% increase in renting costs by 2030, adding £247 to the average monthly rent.

The study warns that renters across England will face more financial challenges unless the Government takes action to increase the supply and affordability of rental homes.

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