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The Office of National Statistics (ONS) published their economic data which highlights a severe imbalance between the rise of wages and inflation over the last year. Without including bonuses, earnings have risen by 3.8% while inflation has risen by 5.4% hitting a thirty year high. The ONS has also indicated inflation may potentially reach 6.0% by April.
Hitting the pockets of tenants all across the UK is not just the difference in income but the increases of expenses. The lifting of the energy price cap and the effect of Brexit is expected to push the domestic bills up even further, creating a heavy limiting economic factor to people's decisions.
Investors have seen these changes coming and how it will hit the rental market with Rightmove dropping over 11% in share price over 5 days since the ONS report, with other big companies hit, including Purple Bricks losing 7.6% and Winkworth down 5.4%.
Affordable accommodation will be even more sought after, with a predicted increase in tenants searching for cheaper options with more appealing home work conditions.
Written by Toby Dawson
