Millions of renters across the UK are being squeezed as landlords sharply increase rents to match record wage growth, a think-tank has said.
The Resolution Foundation has rejected suggestions that rising interest rates pushing up buy-to-let rates and tighter taxation of rental income have caused Britain’s private rents to surge. Instead it blamed a “bounce-back from the pandemic and more recently fast-rising wages”, which have risen by 13 per cent since the beginning of 2022.
It warned that people will see the amount spent on rent grow faster than earnings in the year ahead. Average private rents in Britain have recently climbed to new record highs. In England, they rose by 8.3 per cent to £1,276 in February.
In a report, the Resolution Foundation said: