Cost of Living Pressures and Their Impact on Rental Affordability

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The cost of living remains one of the most influential forces shaping the UK rental market.

Rising energy bills, transport costs, and everyday expenses have shifted renter priorities toward total monthly affordability, not just headline rent. This is driving demand for:

  • Energy-efficient homes
  • Smaller, well-located units
  • All-inclusive rental packages

Landlords are increasingly competing not only on price, but on cost certainty. Properties that help tenants manage overall expenses are letting faster and retaining occupants longer.

At the same time, affordability pressures are constraining how far rents can rise, even in high-demand areas; introducing a natural ceiling in some markets.

At DXXV, rental performance is assessed through affordability ratios, not just rent growth. Sustainable income depends on what tenants can realistically carry.