Private Rents Hit Another Record High
Private rents in the UK have hit another record high, according to new data released by Rightmove in it’s quarterly rental price tracker.
Outside of London, the average rental property is now listed for £1,126 a month. That’s 12% higher than the same time last year, and 19% higher than pre-pandemic. Inside London, the average rental property is listed for £2,257, which is up 15.8% on this time last year.
This increase means that national rents outside of London are rising at the highest annual rate Rightmove has ever recorded in 16 years of reporting. Rents have now risen by 19 per cent – or an average of £177 – since the pandemic started just over two years ago.
By contrast, it took eight years pre-pandemic to reach the same level of growth, illustrating the rapid rise in asking rents since the start of the Covid outbreak. This quarter’s 3.5 per cent jump is the second highest quarterly rise in 10 years.
In the South East, the average rental price is now £1,611pcm, a 5.0% quarter on quarter rise and a 12.1% year-on-year price increase, with the average yield calculated to be 5.3%.
However, there is some good news on the horizon for Generation Rent. More rental properties are starting to come onto the market, bringing more choice and potentially slowing the rate of rental growth across the UK. The number of new rental listings is up 8% since the start of the year. June saw the highest number of new rental listings coming to market of any month this year so far.
However, Rightmove also reports that available rental stock is still down 26% compared to last year’s levels, while demand is up 6%, which means competition between tenants remains extremely fierce.
Rightmove’s Director of Property Science Tim Bannister adds: “The story of the rental market continues to be one of high tenant demand but not enough available homes to meet that demand. Last year we saw exceptional numbers of tenants looking to move and this year we have seen no let-up in this trend.
“While stock levels are beginning to improve, with June seeing the highest number of new rental listings coming to market so far this year, the wide gap that has been created between supply and demand over the last two years will take time to narrow,” Tim said. “Until then, this imbalance will continue to support asking rent growth.”
Now is the best time to rent your property, and if you would like more information about doing so speak to one of our lettings team today on 01903 213111.
Content accurate at time of publishing.