Rent prices continue to rise but demand slows as cost of living pressures bite

The latest data from Zoopla shows rental growth is expected to slow to 5% as demand decreases

"For rent" sign
(Image credit: © Getty Images)

The property market’s outlook for 2023 might remain uncertain, but rental inflation remains high, data from Zoopla has shown.

Though rental inflation has slowed to 11.1% from a high of 12.3% mid-2022, rents are predicted to continue rising this year, albeit at a slower rate than before as “demand moderates and affordability pressures start to bite harder on renters”, said Richard Donnell, executive director at Zoopla.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.