Key facts
- Average asking rents in Britain hit a record high in Q2.
- Outside London, rents averaged £1,397 per month, up 1.9% quarterly and 2.3% annually.
- In London, average rents reached £2,791 per month, up 2.0% quarterly and 2.9% annually.
- The supply of rental properties is down 1% compared to a year ago.
- Rental competition has decreased, with an average of 10 inquiries per property.
Average asking rents across Britain have surged to a new record high in the second quarter of this year, according to data from property website Rightmove. Outside of London, the average advertised private rent for homes entering the market now stands at £1,397 per month. This figure represents a 1.9% increase on the previous quarter and a 2.3% rise year-on-year.
In London, the average advertised private rent reached a record £2,791 per month, marking a 2.0% increase compared to the previous quarter and a 2.9% annual rise. Rightmove reported that the number of homes available to rent is 1% lower than a year ago, with the decrease in supply attributed to fewer newly-listed properties rather than faster market turnover.
Competition among tenants has eased from its peak, with the average rental home now receiving 10 inquiries, down from 11 a year ago and 22 in 2022. London properties typically receive eight inquiries, while the North West of England sees around 14 inquiries per rental property. Property expert Colleen Babcock noted that while supply isn't increasing, the market is more balanced than in 2022, with affordable northern areas showing strong rental growth.
David Fell, lead analyst at Hamptons, suggested that falling mortgage rates are providing landlords with some relief, encouraging them to relet properties instead of selling. This, combined with the strength of the first-time buyer market, is expected to ease persistent rental demand.