England’s Renting Costs Predicted to Skyrocket by 2030

A new study conducted by Zero Deposit, a leading alternative to traditional tenancy deposits, forecasts a significant increase in the cost of renting across England by 2030. The analysis predicts an average rise of 16%, which would elevate the monthly rent to £1,150. However, certain regions could see hikes as steep as 39%, translating to hundreds of pounds added to monthly rental expenses.

Utilising historical data from the Office for National Statistics, Zero Deposit has projected future rental costs based on past market trends. The current average rent in England stands at £994 per month, marking a 5% increase over the past year and a 37% surge over the past decade.

London, already the most expensive region for renters at £1,873 per month, has seen a 12% increase, equivalent to an additional £201 per month, from 2022 to 2023. This trend of rising rental costs is consistent across all English regions, exacerbating the financial burden on tenants nationwide.

Zero Deposit’s projections indicate a grim outlook for renters, with the average rent in England expected to reach £1,150 per month by 2030. This represents a 16% increase, adding £156 to the current average monthly rent. London’s rental costs are predicted to grow by 12%, reaching an average of £2,107 per month.

The most significant increase is expected in the East Midlands, where the average monthly rent could soar by 41%, adding £307 to the current figures. This forecast aligns with a decrease in the Private Rented Sector (PRS) stock in the region, which has fallen from 18.7% of all dwellings in 2018 to 17.3% in 2022.

The South West is also anticipated to witness a substantial rise in rental costs, with an average monthly increase of £382 by 2030, a 39% jump. This is attributed to a similar decline in PRS stock, from 19.4% to 18.1% of all homes in the region.

Sam Reynolds, CEO of Zero Deposit, emphasised the growing financial strain on tenants, noting that average rents have risen annually since 2013, with only two exceptions. “The average tenant is now paying 37% more than they were a decade ago, an increase of £266 more per month. This jump hasn’t been matched by wage growth, which has only risen by 30% during the same period,” Reynolds stated.

He highlighted the lack of sufficient rental stock as the primary driver of escalating rental values, exacerbated by increasing demand and the acceptance of long-term renting. Reynolds criticized the government’s inaction on this issue, warning that rental costs are likely to continue their upward trajectory if no measures are taken to address the shortage of rental homes.