Domesday Live

Why are rents going up?

Rents rise when there are more people wanting to rent than there are homes to rent, and when landlords' costs go up. Fewer landlords and higher mortgage rates since 2022 have squeezed the supply of rental homes while demand stayed strong.

Why it happens

• More renters than rental homes. High prices and deposits keep people renting for longer. At the same time, some landlords have sold up, so there are fewer homes to rent.
• Landlords' costs have risen. Higher mortgage rates, tax changes for landlords and the cost of repairs and regulations are passed on, at least in part, in rents.
• Pay and prices. When wages rise, landlords can charge more. Rents tend to follow average earnings and inflation with a delay, because tenancies only reset once a year.
• New renters pay more than existing ones. Rents for people who move are rising faster than for those staying put, which is why moving can mean a big jump.