- Annual rental growth to slow to 2 per cent by 2028
- UK renters spend a third of their income on rent
The record-breaking pace of residential rental price growth will dramatically slow from 2025 as prices reach an “affordability ceiling”, forcing more debt-laden buy-to-let (BTL) landlords to sell up, a leading estate agency has predicted.
According to Savills (SVS), rents will have surged 9.5 per cent over 2023, and increase a further 6 per cent in 2024 before growth slows to 3.5 per cent in 2025, and continues to subside in the three subsequent years. Savills said rampant wage inflation, a lack of supply, and landlords passing on the cost of high interest rates are the key drivers behind current increases, but added that growth could not continue at this “highly unusual” level.