According to experts such as investment manager Nick Millican, rents will keep rising in London even though many people have reached their “affordability” limit. Since 2021, rents have increased by 31 percent. Rental prices have put a significant strain on people’s finances.
A typical renter can expect to pay up to 42.5 percent of their income, Nick Millican adds. Housing costs are considered to be affordable at 30% of a person’s income. The market expects rents to rise again in 2024, putting additional pressure on people to make their rental payments.
Landlords and tenants have differing expectations for rent increases. Landlords believe the coming rental increase will be between five and ten percent, while tenants expect a five percent increase. Either way, Nick Millican affirms, it will still place an extra burden on a renter’s ability to make those payments.
Since 2020, UK rents have increased by 26 percent, and tenants continue to compete for a shrinking supply of homes. Unfortunately, household income does not appear to be keeping up with projected rental increases.
This is a global trend. This may lead to private investors taking over as private landlords leave the market due to a shortage of available homes to rent. Nick Millican is a well-known figure in the UK real estate industry with a successful record of leadership and success. He has sharp skills in managing investments and developing assets, and he keeps a close watch on UK real estate trends.