Average rents hit another record high across Britain as shortage of homes pushes prices up, Rightmove says
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Average advertised rents have reached record highs across Britain, with fewer new homes coming onto the rental market meaning prices are still rising despite tenant competition easing.
Average rents hit another record high across Britain in the second quarter of the year, as a shortage of new rental listings continued to keep prices climbing, according to new figures from Rightmove.
The property website said the average advertised rent outside London reached a record £1,397 per month between April and June. That was up 1.9% on the previous quarter and 2.3% higher than the same period last year.
London also set a new record, with the average asking rent rising to £2,791 per month. Prices in the capital increased by 2.0% compared with the previous quarter and were 2.9% higher than a year earlier.
Despite rents continuing to rise, Rightmove said the rental market is less frenzied than it was during the peak of competition in 2022.
The number of homes available to rent is now 1% lower than a year ago, with the decline largely driven by fewer landlords putting new properties on the market rather than homes being snapped up more quickly.
On average, each rental property now receives 10 tenant inquiries, down from 11 a year ago and less than half the 22 inquiries recorded in 2022.
Demand also varies significantly across the country. Rental homes in London receive an average of eight inquiries, while properties in the North West attract around 14 prospective tenants each.
These are the key changes every tenant and landlord needs to know
The Renters' Rights Act has introduced sweeping changes for landlords across England, with parts of the legislation also applying in Scotland and Wales.
Insurance provider AXA has published guidance on how the new possession rules work in its landlord advice hub.
The Act introduces several other important reforms, including:
- Abolition of Section 21 "no-fault" evictions in England.
- Periodic tenancies replacing fixed-term assured shorthold tenancies.
- Rent increases limited to once every 12 months.
- Tenants being able to challenge unfair rent increases.
- Rental bidding wars being banned.
- Blanket "no pets" policies ending, with refusals needing to be reasonable.
- Higher expectations around property safety and maintenance.
The full details of all the changes can be found via the AXA landlord advice hub.
With so many changes arriving at once, AXA recommends landlords review both their tenancy agreements and insurance arrangements. More information is available through its landlord advice hub.
Colleen Babcock, a property expert at Rightmove, said: "Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022.
"Regional trends also continue to vary significantly across the country, with more affordable northern areas still seeing some of the strongest rental growth."
David Fell, lead analyst at Hamptons, said recent falls in mortgage rates were helping some landlords keep hold of their properties instead of selling, easing pressure on rental supply.
He also said cheaper mortgage deals are making buying a home more affordable for some tenants, with monthly mortgage repayments now falling below the rent many people are paying. That shift, alongside a strong first-time buyer market, could help reduce demand in the rental sector over the coming months.
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