Dataloft Briefing notes | Addressing topical issues in UK rental markets

Rental affordability is under intense scrutiny given the acute pressures in today’s market. Some can be explained by short-term imbalances in the wake of the pandemic but there is clearly a deeper structural problem that needs to be addressed.

In Briefing Note 12, we explore the extent to which people on low earnings are excluded from the UK’s private rental sector, or compromise on their living standards.

Based on rents achieved in 2022, only 1% of one-bed flats in London were available to a lower-quartile earner in a one-person household. In the wider South East it was 7%, and 30% in the rest of the UK.

Two-person households were in a stronger position but still restricted, particularly in London, with very little opportunity to consider a two-bed flat.

The implications are that renters compromise on quality, size and location in order to find a home. We discuss why the benefits of addressing this challenge would accrue for society as well as for individuals. This evidence makes a clear case for investors wishing to deliver social impact.

As with all our rental analysis, it draws on our DRMA dataset of rents achieved and renter demographics. If you would like to see an example of a report or talk to us about underwriting future rental values, please set up a call.

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