Residential rental market in the UK - statistics & facts

Rental housing is of great importance in the UK, with a larger share of the population renting instead of owning their homes compared to other European countries. Out of approximately 23.5 million households, over one third were private or social renters. While the proportion of renters has remained relatively stable over time, renting from a private landlord has become more common than from a local authority or a housing association. Over the past 20 years, the residential rental market has tripled, and an October 2022 forecast suggest that rents will continue to rise until 2026. With many people unable to afford to buy a home, demand for rental housing is expected to remain strong. This is confirmed by the average void period, which has remained consistently below 30 days across the country since November 2020.

Private landlords in the UK

Private landlords in the UK have varying portfolio sizes, but about two in three landlords owned and sublet between two and ten properties in 2022. Whether operating one property as a private individual or over 100 properties as part of a company, portfolio management involves considering many factors. One of these is knowing when the best time is to buy or sell a rental home. Since April 2017, tax changes on buy-to-let have been in place, meaning landlords can no longer deduct costs such as mortgage interest from their rental income. From April 2020, landlords were eligible for 20% tax relief on mortgage payments instead. As a result, the share of landlords planning to sell a property from their portfolio has been higher than the share planning to grow their portfolio since 2017. Overall, the confidence among landlords decreased in 2022, with the UK financial markets being the biggest source of concern.

The cost of renting

While bigger cities offer higher incomes and job opportunities, the cost of living is also higher. The average monthly rent in the UK exceeded £1,000 in 2022, but Londoners paid significantly more. Within different boroughs of London, rents varied even more dramatically. Renters across the country spent between a quarter and a third of their income on rent, with London, South West and South East having a higher rent-to-income ratio than the national average. So why are rents rising? According to landlords, the rising operational costs and the need to align with local market rents were the two main reasons for rent increases.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 20, 2023

Key insights

Share of people who rent in the UK
35.7%
Rental costs paid by tenants
89.4bn GBP
Private renters: average number of years in current home
4.2 years
Get more insights

Editor’s Picks Current statistics on this topic

Average monthly rent in the United Kingdom (UK) in April 2022 and April 2023, by region (in GBP)

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Average cost of rent in the UK April 2022-2023, by region

Quarterly house price to rent ratio in the United Kingdom (UK) from 2nd quarter 2015 to 3rd quarter 2023

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House price to rent ratio in the UK 2015-2023, per quarter

Number of households occupied by private renters in England from 2000 to 2023 (in millions)

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Number of private rented households in England 2000-2023

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Local authority and social housing in the UK
Local authority and social housing in the UK
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Housing issues in the United Kingdom
Housing issues in the United Kingdom
Residential rental market in the United Kingdom (UK)
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