Average rents reach record high as demand continues to grow

Average rents reach record high as demand continues to grow
Nick Cheek
Written By:
Nick Cheek

The average rent in London has reached a record £2,627 a month while outside the capital, tenants are forking out £1,278. All the while, competition remains fierce with 25 enquiries received per rental property.

The average rent outside of London has grown for the 15th consecutive quarter and is 10% higher than this time last year, according to Rightmove.

Within the capital, the average rent has increased 12.1% compared to the same period last year.

And, it’s down to the lack of available rental properties to meet demand.

Rightmove noted that letting agents were receiving 25 enquiries from prospective tenants for the average rental property. This is over triple the average figure in 2019 and is five more than the figure reported back in May.

The number of unique tenants looking to move is 41% up compared to 2019 levels and the number of properties to rent has fallen 35% over the same period.

Rightmove noted that supply and demand had slowly started to improve, with demand easing 17% compared with 2022.

Meanwhile the total number of properties to rent increased by 14% compared with 2022 and the number of new properties were 7% up on this last year.

Rent rises could slow

Rightmove’s director of property science, Tim Bannister, said: “Record rents and far more tenants looking to move than there are homes available means it will still feel very difficult for many tenants navigating the market.

“However, there are signs that some of the pressure between supply and demand is beginning to ease, with the number of new rental properties coming to the market now at its highest level since the end of last year.”

He added: “While it is likely that there is some way to go before this filters through to rental prices, if the improving trend between supply and demand continues, we could start to see the pace of yearly rent rises slow more significantly than it has been.”