Forecast annual residential property rental price growth in the UK 2024-2028

According to the forecast, until 2028, the rental rate for residential real estate in the United Kingdom (UK) is expected to see an increase of almost 18 percent. The growth is expected to be stronger at the beginning of this period, with an annual increase of five percent in 2024. One of the major factors affecting the development of rental rates is homeowner affordability. The less affordable purchasing a home is, the more demand in the rental market. The UK housing market experienced a decade-long period of rising prices, before it started to cool in the second half of 2022. One of the reasons for the downturn is the increased cost of borrowing. Throughout the year 2022, the 10-year mortgage rate doubled, resulting in a significant burden on prospective homeowners.