Record High Private Rents in Great Britain Revealed by Latest Data

Private rental costs in Great Britain have surged to unprecedented levels, with the average advertised rent for new properties outside London now at a historic peak of £1,280 monthly.

According to Rightmove, this represents a modest £2 increase from the previous quarter, indicating a slowdown in the rate of rent growth.

Outside London, advertised rents are 9.2% higher than they were a year ago. Despite this, Rightmove notes some positive signals for tenants, as rental price growth seems to be easing.

However, the continuous uptick in rent is straining household budgets, and more renters are reaching their spending limits, leading some landlords to drop their prices.

In London itself, rents have also hit a new high, reaching £2,631, but the pace of increases has decelerated.

Regional disparities are evident, with certain areas like Walton-on-Thames, Coventry, and Luton seeing annual rent hikes exceeding 20%. Conversely, rents have marginally decreased in southeast England, the southwest, and Scotland.

The balance between supply and demand is slowly improving, with a 7% rise in available rental properties and a 13% drop in rental inquiries compared to last year. Furthermore, nearly one in four properties have had to lower their initial rent to attract tenants.

Tim Bannister of Rightmove explains that the rental price growth is gradually leveling out due to improved property availability and reduced demand.

He stresses that rents cannot keep rising at a double-digit rate yearly as tenants' affordability can't match up. Bannister predicts that rent increases in 2024 will be substantially lower, around 5% outside London and 3% within the capital.