Rent prices outside of London have soared to a new high, averaging £1,344 per month, marking a 5.2% increase from the previous year. This increase has been reported by a property website, which also noted that the average rent for properties in London has reached a record £2,694 per month, reflecting a 2.5% rise from the previous year, according to Rightmove.
The data, covering the third quarter of 2024 across Britain, reveals that the average number of inquiries per rental property has decreased to 15, down from 23 in the previous year but almost double the figure of eight in 2019. While there has been an annual increase in the supply of rental homes, it still falls below the levels seen in 2019. Rightmove indicated that over a fifth (21%) of properties are reducing asking rents before securing a tenant, up from 16% last year.
In addition to the rise in rental price reductions, the property website highlighted a trend of some landlords selling their properties, with 18% of homes for sale previously being available for rent, an increase from 8% in 2010. Tim Bannister, the director of property science at Rightmove, commented on the market’s dynamics, stating that although there are signs of improvement in the demand and supply balance, affordability remains a significant challenge for renters.
Nathan Emerson, the chief executive of Propertymark, a body representing property professionals, emphasised the financial pressures faced by landlords, attributing rent increases to the need to cover rising costs. He highlighted the continuous financial and regulatory challenges landlords encounter, leading many to raise rents just to break even.
Acknowledging the slight easing of tenant competition compared to the previous year, Bannister cautioned that the rental market still lacks equilibrium. He noted that while there has been a slight increase in available rental properties, rental prices continue to reach new records. The ongoing imbalance between supply and demand poses continued challenges for renters.
The latest figures indicate a complex landscape for renters and landlords alike, as the rental market grapples with evolving dynamics and affordability concerns amidst fluctuating supply and demand levels. As the market continues to evolve, stakeholders are navigating an environment where balancing financial sustainability for landlords and affordability for tenants remains a pressing issue.