UK Rents Set to Outpace Wages, Squeezing Millions of Households

Rent rises in UK forecast to outpace wage growth over next 3 years, adding pressure on millions of households
Average rents could increase by 13% by 2027, much faster than 7.5% predicted growth in average earnings
Recent rental growth surge affecting more families as private renting has nearly doubled since mid-1990s
While rental growth is cooling after pandemic rebound, existing tenants will still face large rises when tenancies renew
Rents tend to track wages long-term but remain 5% lower now after pandemic disruption, indicating further catch-up growth ahead