Asking rents reach record highs across Britain, new data from Rightmove shows
Average asking rents across England have risen to an unprecedented level, reaching a new record in the second quarter of this year, a property website has revealed.
Excluding London, the average advertised private rent for homes entering the market currently stands at £1,397 a month, according to Rightmove.
This figure represents an increase of 1.9 percent compared to the previous quarter and 2.3 percent annually.
The average advertised private rent in London has reached a record high of £2,791 per month.
This represents an increase of 2.0% compared to the previous quarter and 2.9% annually.
The data follows incoming prime minister Andy Burnham’s pledge to tackle the cost of living when he told LBC earlier this month the government needed to “get serious about putting more money in people’s pockets”.
Mr Burnham did not commit to immediate action on rent costs. But in 2023 he signed an open letter to then-housing secretary Michael Gove calling for an “immediate rent freeze” following the Covid outbreak.
In recent months, the incoming prime minister promised “the largest municipal housing building program since the post-war period” when he came to power; this policy – if successful – could be effective in reducing housing costs in the long run.
Rightmove said the number of homes available to rent was 1% lower than a year ago, with the decline in rental supply due to a decline in newly listed rental properties rather than an increase in the speed of the market.
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Competition among tenants is significantly lower than at its peak, with the average rental home now receiving 10 inquiries compared to 11 a year ago and 22 inquiries in 2022, the report said.
Rightmove added that rental properties in London had an average of eight queries per rental property, compared to 14 queries per rental property in North West England, with regional variations.
Rightmove property expert Colleen Babcock said: “Although supply is no longer increasing, the market remains much more balanced than 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 rent increases.”
David Fell, chief analyst for the Hamptons, said: “Falling mortgage rates in recent weeks have given homeowners some breathing room, encouraging those whose fixed deals are expiring to resell rather than sell, preventing a more serious supply squeeze.
“For renters considering buying, these lower rates push their monthly mortgage payments below the rent they are paying.
“This exodus of long-term tenants and the strength of the first-time buyer market will help alleviate demand for permanent rentals.”
