Average Rent Outside London Reaches Record High

New data released by Rightmove has shown that the UK rental market is continuing to experience an upward trend in rents.

‍

Average Rents Increase to £1,190 Per Month Outside London

The data revealed that the average rent outside London has reached a new record high of £1,190 per month, while the figure has surpassed £2,500 for the first time in the capital. This is an indication of the sustained pressure being placed on the rental market and the impact of the pandemic on the supply and demand of rental properties.

‍

Asking Price for Rents Outside London Have Risen Every Quarter Since 2019

Rightmove also reported that asking rents across Britain outside of London have been rising every quarter since the end of 2019. However, the pace of increases has been slowing down generally across the country, indicating a possible easing of pressure on the rental market. Despite this, the rental market remains constrained, with a significant imbalance between renters looking for properties and the availability of homes to rent.

‍

Supply of Private Rental Property Constrained

According to Rightmove, the supply in the rental market remains very constrained, with a significant imbalance between renters looking for properties and the availability of homes to rent. However, there are some slow signs of improvement this year. Rightmove’s director of property science, Tim Bannister, stated that there are early signs that the gap between supply and demand is starting to narrow a little, but it will still feel very competitive for tenants trying to secure a home.

Rightmove's director of property science, Tim Bannister, noted that "Many agents are having to manage a very high volume of tenant inquiries for every property that they let in the current market. Properties in popular areas within an affordable asking rent range of that local area are likely to be snapped up almost immediately, and on average homes are finding a tenant much more quickly than this time in 2019."

In addition, Craig Webster, managing director of Tiger Sales & Lettings in Blackpool, Lancashire, highlighted that the rental market remains very busy, with multiple applicants competing over a shortage of property to rent. He added that they are seeing more tenants staying put in their current home, which is having a knock-on effect for the rest of the market and contributing to the shortage.

Overall, the data reveals that the UK rental market is still facing significant challenges. While there are early signs of improvement, the mismatch between supply and demand is expected to continue for some time, making it a competitive market for tenants looking for a home.

‍

Invest in UK Buy-To-Let Property to Capitalise on the Supply Demand Imbalance

Interested in investing in UK rental property to capitalise from the supply and demand imbalance? Click here to find out how Regency Invest can help.