Rents have hit record highs across Great Britain, with London and regional hotspots experiencing significant hikes in the average advertised rent, according to new data from property website Rightmove. The surge in prices comes as the supply of available rental properties has dipped below last year's levels for the first time since 2022, putting even more pressure on would-be tenants.
The average rented price outside London jumped by a staggering 1.9% over the second quarter of this year, reaching £1,397 per month – a new record. Meanwhile, in London, rents soared by 2% over the same period to an eye-watering £2,791 per month.
Rightmove's Colleen Babcock notes that while average rents have hit fresh highs, market patterns are beginning to return to normal and growth is stabilising. Despite a dip in supply – down 1% compared with this time last year – the property expert suggests the current landscape remains more balanced than the frenzied market seen in 2022.
Regional variations remain stark, with areas like the North East and North West recording annual advertised rent growth of 4.1%, significantly higher than the 1.5% recorded in the East Midlands and East of England. In London, renters have fewer choices, with an average of eight enquiries per available home – a far cry from the North West's high of 14.
With annual wage growth easing to 4.4%, tenants are becoming increasingly price-sensitive, particularly in more expensive regions. Meanwhile, prospective landlords face higher buy-to-let mortgage rates, averaging 5.55% at present – still above last year's 5.20%. This complex cocktail of factors is set to shape the UK's rental market.