Cigarettes, cars and uni fees – the only things to outstrip rental growth this Millennium

Rental price growth has outstripped many of life’s day-to-day costs, like bread, eggs and fuel, research from online letting agent Howsy has revealed.

The cost of renting a property in England has increased from an average price of £344 in the year 2000 to £858 in 2019, a 150% increase in just shy of 20 years.

In comparison, the cost of milk has risen by just 29% to 44p per pint over the same time period.

Similarly, eggs per dozen are 42% more expensive, fuel per litre has risen by 59% to £1.27, while McDonald’s Big Macs have risen by 63% to £3.09.

The average price of draught beer per pint has increased by 82% to £3.64.

Bread (per white loaf sliced) has seen a significant price increase of 104% to £1.06, though it’s still less of a hike than with the private rental sector.

Cigarettes and cars outstrip rental growth

While the cost of renting has risen significantly, it’s still been hiked by a lower percentage than cigarettes. A pack of 20 is now 162% more expensive than in 2000, costing £10.23, up from £3.91.

Buying a brand new car is now 163% more pricey, rising from £12,780 in 2000 in £33,559 in 2019.

Trumping all these costs is university tuition fees per year, which thanks to government measures are 825% more expensive than in 2000, rising from £1,000 to £9,250.

Founder and CEO of Howsy, Calum Brannan, commented:

“It will come as little surprise that rents have risen at a faster rate than many of life’s other essential outgoing costs since the turn of the Millennium.

“This is largely due to the ever-increasing levels of tenant demand within the sector and a stagnant level of homes to accommodate this demand, which has resulted in a substantial hike in the cost of renting.

As a result, people are now spending a greater proportion of their income on rent when compared to other essentials like food or fuel. If you rent, smoke, went to university and need a car, then you’re really up against it financially.”