Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Average Monthly Rents in England Now 13 Times Higher Than in 1988

Generation Rent has reported that the average monthly rent in England has reached £1,442, which is thirteen times higher than the average rent in 1988 (£111). This analysis was published as part of the campaign group’s ‘cost of renting receipt’, highlighting the increase in private rents since the 1988 Housing Act.

The report notes that if the price of everyday groceries had increased at the same rate as private rents since 1988, a standard ten-item supermarket shop would now cost more than five times its current price. The 1988 Housing Act abolished the system of regulated tenancies and fair rents, which had been introduced by the 1965 Rent Act. 1988 was the last year when private rent costs were regulated in this way.

According to Generation Rent, private renters in England now spend over 36% of their income on rent on average, with this figure rising to well above 40% in many major cities.

Generation Rent is calling for the introduction of a limit on rent increases, proposing that rent hikes be capped to the lower of Consumer Price Inflation or wage growth. The group notes that similar policies have been endorsed by think tanks including IPPR, the Joseph Rowntree Foundation, the New Economics Foundation, and the Fabian Society.

This information is relevant for UK letting agents and inventory clerks monitoring trends in the private rented sector, as it highlights significant changes in rent levels and ongoing policy discussions that could impact future rental practices.