Rents hit record high, Rightmove data shows
Rightmove has published its latest data on UK rental properties. The report reveals rents are hitting all-time highs as the gap between supply and demand continues to widen.
Average asking rents outside London have reached a new record high of £1,162 per calendar month. That is a rise of 3.2% which is only the third time on record that rents have increased by 3% or more in a quarter.
Average asking rents in the capital have risen to a record of £2,343 per calendar this quarter. This puts the annual rate of asking rent growth in London at 16.1%, which is the outright highest yearly rate of growth on record.
The widening of the gap between supply and demand is due to tenant demand increasing at a higher rate than available rental properties, despite some areas beyond London seeing an increase in available rental properties. Rightmove report total tenant demand up by 20% from last year, while the number of available rental properties is down by 9%.
Certain property types have even more competition between tenants, with demand for studio flats 71% higher than last year. Rightmove reports there are now four times as many tenants seeking a studio flat than there are studio flats available.
The Director of Property Science at Rightmove, Tim Bannister, described the challenge facing renters, saying: “Whilst it’s positive news that most areas are seeing more properties coming to market, with London the notable exception, ultimately the gap between supply and demand is becoming wider across the board.
“We will need a significant addition of homes to come onto the market to even begin to balance the scales. Those looking to rent a smaller property in the next few months may find that they face some added competition from would-be first-time buyers, who have had their purchase plans scuppered for now due to the sudden rise in mortgage interest rates and are now looking to rent.”
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