UK rents to surge by 2030 - East Midlands will see the largest rise

The monthly cost of renting is projected to rise significantly in the UK by 2030 with tenants seeing a potential outlay of £1,150 per month, research reveals.

According to Zero Deposit, the average increase will be 16% with some regions experiencing even higher increases of up to 39%.

But tenants in the East Midlands look set to pay a staggering 41% more.

The firm analysed historic rental market data from the Office for National Statistics for each region of England.

Based on these historical trends, it estimates that if the average rent in England did rise by 16% by 2030, tenants would be paying £156 a month more.

‘The average rent in England’

The firm's chief executive, Sam Reynolds, said: "Since 2013, the average rent in 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 Office for National Statistics showing that wages have increased by just 30% during the same time period."

He added: "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."

Push the average monthly rent to £2,107

London remains the least affordable region with a forecast 12% increase expected to push the average monthly rent to £2,107.

However, renters in the capital aren't facing the highest rent rise - that's set to be for tenants in the East Midlands.

Zero Deposit predicts a 41% climb in the average cost of renting here will add £307 per month.

Falling level of private rented sector (PRS) stock

Additional analysis of government data reveals that the falling level of private rented sector (PRS) stock may be driving this trend.

Since 2018, the proportion of homes to rent of all East Midlands’ properties has dropped to 17.3% from 18.7% (as of 2022), a decline of 1.4%.

The South West also experienced a similar reduction of 1.3%, falling to 18.1% from 19.4%.

As a result, tenants here will see the average rent climb by £382 per month - a jump of 39%.

Mr Reynolds said: "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."

He adds: "The Government has done little to address this issue and if they continue to sweep it under the rug, the reality is that rents will only increase further over the coming years."

East of England will see the average rent jump by 29%

Renters in the East of England will see the average rent jump by 29% or £291 per month, while Yorkshire and the Humber will see rents enjoy the most marginal increase of 9%.

The findings highlight that the average renter pays £994 per month to rent in England.

This has risen by 5% in the last year - and a whopping 37% over the last 10 years.

London is home to the highest average rent bill at £1,873, which has gone up by 12%, or £201 per month, in just one year (2022 vs 2023).

Zero Deposit says that every English region has seen rents rocket between 2022 and 2023 with the new figures showing that things aren't going to improve for renters soon.

‘Shocked by the predicted figures for rent rises’

The managing director of Accommodation for Students, Simon Thompson, said: “There will be a lot of landlords and tenants being shocked by the predicted figures for rent rises.

“But we need to bear in mind what the inflationary pressures are – so, rents will effectively keep pace with inflation in most areas.”

He added: “The shockingly high increase predicted for tenants in the East Midlands also underlines the supply and demand imbalance we have in England’s private rented sector.

“Either the government needs to build more houses, or it needs to offer incentives to help landlords remain in the sector and deliver quality homes to rent.”