June 6, 2023

Average rents for property across Britain have hit a new all-time high, according to data from a property website showing a record £2,500 per month in London.

Rightmove said the average rent demanded outside the capital exceeded £1,190 a month for the first time in the first three months of the year.

It completed, the company said, an increase in rents outside London for every quarter since the end of 2019.

The main reason why rents have risen so much is that demand has outstripped the supply of available homes.

This was exacerbated last September when the chaos in the financial markets that followed the Liz Truss administration’s mini budget led to a temporary spike in mortgage costs.

The precipitation contributed to a sharp weakening of the annual rise in house prices.

Brokers and landlords have been inundated with inquiries, while high demand has allowed some to secure longer, more lucrative leases of up to three years.

Rightmove said the biggest imbalance between supply and demand was in the townhome sector.

A man looks through the window of an estate agent in Hale, following the outbreak of the coronavirus disease (COVID-19), Hale, UK, May 13, 2020. REUTERS/Phil Noble
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But it added that there was evidence that the pace of rental growth slowed due to an increase in the number of rental properties becoming available this spring.

The website’s director of real estate science, Tim Bannister, said: “We’ve seen some early signs of improvement this year in the tight supply, but as there is currently no significant influx of new homes available to rent, the mismatch is likely to deepen. continue for some time.

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“Many estate agents have to manage a very large number of tenant applications for every property they rent out in today’s market.

“Properties in popular areas within an affordable demand rental range of that area are likely to be snapped up almost immediately, and on average, homes are finding tenants much faster than this time in 2019.”