Renters in the UK have experienced a sharper rise in monthly housing costs than homeowners with mortgages, according to new research from property portal Zoopla—raising fresh concerns about the long-term affordability of the rental market and the pressure on households already struggling with the cost of living.
The average monthly rent has jumped by £221 since 2022 to £1,283, compared with an average £218 rise in mortgage repayments to £1,154 over the same period. The figures suggest that renters are now paying more per month than the average mortgaged homeowner, reversing a long-standing norm in the housing market.
The rent surge has been fuelled by a sharp post-pandemic rebound in demand for rental properties, particularly during 2022 and 2023, while the stock of private rental homes has remained broadly static. High migration levels for work and study, coupled with a strong labour market and wage growth, added further fuel to the demand-side pressure.
However, affordability constraints have trapped would-be buyers in the rental sector, unable to save for deposits or access mortgages amid high interest rates, creating a feedback loop of sustained demand and rising rents.
“The quickest way to alleviate high rents is to grow the stock of homes for rent in both the social and private rented sectors,” said Richard Donnell, Executive Director at Zoopla. “Growing housing supply is a key government target, and it’s vital that the stock of rented homes is expanded across all tenures.”
While strong wage growth has helped some renters absorb higher payments, lower-income households and those on state support have been disproportionately affected by rising rents. In some towns, the scale of the increase has been striking.
• Oldham saw the biggest three-year rise in average rent—up 35% to £876/month
• Wigan followed closely with a 32% increase to £800/month
The pattern suggests that rental inflation is no longer confined to London or major cities, but is increasingly impacting smaller regional markets where affordability pressures are mounting.
There are tentative signs that rent inflation is easing. Zoopla noted that rental price growth for new lets has slowed to its lowest level in four years, amid:
• Slower wage growth, capping affordability
• Improved mortgage deals for first-time buyers, drawing some renters out of the sector
This week, estate agency Hamptons revised down its 2025 rent growth forecast from 4.5% to just 1%—the smallest annual increase since 2018.
But the structural imbalance between housing demand and supply remains unresolved.
A separate report by Savills in March revealed that UK households faced an additional £19.8 billion in mortgage and rental payments last year, taking the total to £217.5 billion—a record figure.
• Mortgage interest payments jumped 25% to £49.2 billion
• Private rent payments rose 9% to £80.7 billion
• Social rent costs climbed 8% to £27.3 billion
Much of the pressure on renters can be traced back to landlords passing on higher mortgage costs, exacerbating the rent increases felt across the private sector.
Looking ahead, Savills projects that rents will rise by nearly 20% over the next five years, outpacing the 15% rise in average incomes forecast over the same period—suggesting that rental affordability is likely to worsen further unless bold action is taken to increase housing supply.
The findings underscore the urgent need for long-term housing reform. As the UK grapples with stagnant housing supply, diminished affordability, and mounting household financial pressures, renters—particularly those on lower incomes—are bearing the brunt.
Without meaningful policy intervention, the gap between what tenants pay and what they can afford may continue to grow—deepening inequality and undermining social mobility in the housing market.
