Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
UK asking rents reach new record outside London
The average advertised rent of homes outside London has risen to a new record of £1,418 per calendar month, according to Rightmove data. Asking rents have increased by 1.5% this quarter, though annual rental growth has returned to a more stable level of 2.4%.
Supply and demand both ease nationally
The number of available rental homes nationally is 2% lower than a year ago, while renter demand is also down by 2%. The research shows the proportion of homes for sale that were previously for rent — an indicator of landlords selling up — is stable this year at around 13%, only slightly up on last year's 12%. However, the proportion of homes to rent that were previously for sale has decreased from 17% to 15%, an indicator of reduced landlord investment.
London records its own record rent
London has reached a new average advertised rent of £2,825 per calendar month, with annual rent growth accelerating to 3.2%, above the national average outside the capital. Rightmove said there is a larger squeeze in London, with the total number of available rental listings down 9% annually, newly listed rental homes down 7%, and renter demand up 6% compared with a year ago. Rents are mostly rising faster in lower priced parts of Britain, but London is the third fastest region for rental growth annually.
Rightmove and Propertymark react
Colleen Babcock, property expert at Rightmove, said average rents have reached another new record and have now surpassed £1,400 per month outside London for the first time. She said rental growth has continued to settle compared with the exceptionally fast pace seen a few years ago, adding that supply remains constrained, which continues to put upward pressure on rents, but demand is also more measured.
Kim Lidbury, President of ARLA Propertymark, said the latest figures highlight why the rental market needs to be judged on more than the rate at which rents are rising. She said that although rental growth has moderated, advertised rents remain at record levels and the availability of suitable homes continues to be a major concern for tenants. She added that the cost and complexity of providing rental housing remain important considerations for landlords, with financing costs, taxation and regulatory requirements all influencing decisions about whether to invest in, retain or sell rental property. She said letting agents also have an important role in helping landlords meet their responsibilities, maintain property standards and provide a professional service to tenants.
Source: The Negotiator