Misery for tenants as rents hit record highs

Average asking rents for new tenants outside of London reached new highs last quarter with landlords asking for £1,231 per calendar month (pcm).

Statistics from Rightmove’s Rental Price Tracker suggest that the average asking rent for a typical home outside of the capital is now a third higher than it was in 2019, increasing by more than £300 from £923 pcm.

Rental prices in London tell a similar story, with average asking rents reaching £2,567, and while the pace of rent growth has slowed slightly, it remains in double-digits for the seventh consecutive quarter. London rents are now 28% higher than this time in 2019.

Despite quickly rising prices, rental homes are continuing to be let at speed with the average property being filled within 17 days on average.

In slightly better news for tenants, the gap between supply and demand has narrowed slightly compared to this time last year, with available properties to rent up by 7% compared with June 2022.

Why are rents so high?           

Put simply - it’s supply and demand. Rents are high because there’s a shortage of affordable housing.

Not enough homes have been built over the last few decades, while social housing stock has also been sold off through right to buy schemes or demolished and not replaced.

The private rental sector has mopped up the overspill from this and with higher demand than supply, prices have been inflated.

Will rents continue to increase?

Unfortunately, with no sign the supply issue is being tackled, rents will continue to growth.

It’s predicted there will be a lot less properties available in the next 12 months with experts suggesting they’ll be mass exodus of landlords from the sector as a result of high interest rates and changes brought in by the Renters Reform Bill.