Rents Rise £221 in 3 Years to Outpace Mortgage Costs
A detailed analysis of UK housing costs reveals that tenants have experienced a more significant increase in their monthly expenditure than mortgaged homeowners over the last three years. This trend underscores the persistent pressures within the private rented sector, driven by a fundamental imbalance between supply and demand.
A Statistical Overview of Recent Housing Cost Rises
Between 2022 and 2025, the average monthly rent in the United Kingdom has increased by £221. By comparison, data from the Bank of England shows that the average monthly mortgage repayment has risen by £218 over the same period.
This divergence has resulted in the average national rent reaching £1,283 per month, now standing considerably higher than the average mortgage payment of £1,154 per month.
The increases are not uniform across the country. Certain regions have witnessed particularly sharp rental inflation. In towns such as Oldham, Wigan, and Bolton, rents have surged by over 31% as affordability in these traditionally lower-cost areas allowed more room for growth.
Meanwhile, London has seen the most substantial increase in absolute monetary terms. In some parts of the capital, particularly in more affordable outer boroughs like Ilford, monthly rents have climbed by as much as £400 since 2022.
Where are the biggest rent rises since 2022?
Here are the UK postal areas that have seen the biggest increase in rents over the last 3 years.
| Postal area | Average monthly rent: Mar 25 | % change 2022-2025 | £ per month change 2022-25 | Change in annual rental cost 2022-25 |
|---|---|---|---|---|
| Oldham - OL | £876 | +35% | +£227 | +£2,724 |
| Wigan - WN | £800 | +32% | +£194 | +£2,328 |
| Bolton - BL | £884 | +31% | +£211 | +£2,532 |
| Falkirk - FK | £881 | +31% | +£207 | +£2,484 |
| Walsall - WS | £893 | +30% | +£206 | +£2,472 |
| Wolverhampton - WV | £911 | +30% | +£209 | +£2,508 |
| Paisley - PA | £763 | +29% | +£170 | +£2,040 |
| Tweeddale - TD | £635 | +29% | +£143 | +£1,716 |
| Dudley - DY | £878 | +28% | +£190 | +£2,280 |
| Ilford - IG | £1,794 | +28% | +£395 | +£4,740 |
| Kirkcaldy - KY | £717 | +28% | +£156 | +£1,872 |
| Romford - RM | £1,611 | +28% | +£356 | +£4,272 |
| Carlisle - CA | £664 | +27% | +£140 | +£1,680 |
| Edinburgh - EH | £1,166 | +27% | +£248 | +£2,976 |
| Luton - LU | £1,208 | +27% | +£258 | +£3,096 |
| Blackburn - BB | £688 | +27% | +£141 | +£1,692 |
| Manchester - M | £1,176 | +26% | +£239 | +£2,868 |
| Medway - ME | £1,239 | +26% | +£254 | +£3,048 |
| Motherwell - ML | £721 | +26% | +£148 | +£1,776 |
| Newcastle - NE | £853 | +26% | +£177 | +£2,124 |
| Slough - SL | £1,599 | +26% | +£326 | +£3,912 |
Key Drivers of Rental Market Inflation
The sustained upward pressure on rents can be attributed to several converging market forces:
Intensified Tenant Demand: The post-pandemic period saw a surge in demand, fuelled by a robust labour market and higher levels of migration for both employment and education.
Barriers to Homeownership: Elevated mortgage rates throughout 2022 and 2023 made it significantly more challenging for first-time buyers to enter the property market. This has prolonged tenancies and kept demand for rental properties artificially high.
Stagnant Supply: The stock of available rental properties has failed to expand in line with demand. A lack of new investment from landlords over the past decade has created a critical supply shortage.
Earnings Growth: Robust growth in average earnings has, to some extent, supported the capacity for higher rental payments, although this has placed an immense strain on lower-income households and those reliant on state support.
Market Outlook: A Slowdown in Growth but No Imminent Price Reversal
There are early indications that the pace of rental growth is beginning to moderate. The rate of increase is now at its lowest level in four years, a development that will be cautiously welcomed by tenants. This slowdown can be linked to a slight weakening in demand as mortgage market conditions for first-time buyers begin to improve and affordability ceilings are reached in many local markets.
However, a significant decrease in rental prices is not anticipated in the near future. The structural issues of high demand and chronic undersupply are expected to persist, ensuring that the rental market remains competitive.
An Expert Perspective
Richard Donnell, Executive Director at Zoopla, accurately summarises the situation: "The quickest way to alleviate high rents is to grow the stock of homes for rent in both the social and private rented sectors. Growing housing supply is a key Government target and it’s vital that the stock of rented homes is expanded across all tenures."
For both landlords and tenants, navigating this complex market requires careful consideration and professional guidance. Landlords must remain aware of their property's value and condition to ensure a fair return and compliance, while tenants face the challenge of securing suitable accommodation at a sustainable cost. The underlying data confirms that without a significant increase in housing stock, the affordability pressures on Britain's renters are set to continue.