Advertised rents across Britain have reached record highs, with figures from Rightmove showing average rents outside London exceeding £1,400 a month for the first time, now standing at £1,418. This follows a 1.5% quarterly increase.
However, annual rental growth nationally has slowed to 2.4%, a notable shift from the double-digit increases observed between 2021 and 2023. Available rental stock and tenant demand have both fallen by 2% year-on-year, suggesting a more balanced market overall.
In contrast, London's rental market is experiencing renewed pressure. Average advertised rents in the capital have reached a record £2,825 per month, with annual growth accelerating to 3.2%. Available rental properties in London have decreased by 9% over the past year, while tenant demand has increased by 6%.
The figures also indicate a potential slowdown in landlord investment. The proportion of rental properties previously advertised for sale has fallen from 17% to 15%, suggesting fewer properties are entering the private rented sector. Higher borrowing costs are contributing to this, with the average two-year fixed buy-to-let mortgage rate climbing to 5.34%.