Rent outside London has hit a new record average of £1,344 per month, according to a report by property website Rightmove. This marks a 5.2% increase from the previous year. The average rent for London properties has also soared to a new high of £2,694 per month, showing a 2.5% rise compared to last year’s figures. These record-breaking rental prices were observed in the third quarter of 2024 across Britain.
Despite the increase in rental prices, there has been a slight uptick in the number of available rental properties, with Rightmove noting a rise in supply. However, the supply still remains below 2019 levels. The report highlighted that on more than 20% of properties, asking rents are being reduced before tenants are secured. This percentage has increased from 16% the previous year.
Moreover, there are indications that some landlords are transitioning to selling their properties, as 18% of homes for sale were previously available to rent. This number has significantly increased from 8% in 2010. This shift in the market dynamic poses challenges to renters, as prices continue to hit new heights, making affordability a key concern.
Tim Bannister, director of property science at Rightmove, acknowledged the ongoing imbalance between demand and supply in the rental market. He noted that while there has been a slight easing in tenant competition, the market still lacks equilibrium. Property professionals’ body Propertymark’s chief executive, Nathan Emerson, commented on the financial pressures faced by landlords, leading them to raise rents to cover escalating costs.
The rental market’s current landscape reflects a mix of challenges for both landlords and tenants, with affordability remaining a significant hurdle for renters amidst soaring rental prices. As the market continues to evolve, finding a balance between supply, demand, and affordability remains a crucial objective for stakeholders in the property sector.