Average asking rents hit ANOTHER new high - Rightmove

Average asking rents for new tenants outside of London reach another new record this quarter of £1,231 per calendar month.

That’s the news from Rightmove, which says the average asking rent for a typical home outside of London is now a third higher than in pre-pandemic 2019, increasing by more than £300 from £923 pcm.

By contrast, average asking rents for new tenants outside of London rose by just £71 or eight per cent in the four years previous between 2015 and 2019, highlighting the rapid increase in new asking rents as tenant demand has increased and the number of properties available to rent has been steadily squeezed since the pandemic.

Although the yearly pace of rent increases for new tenants continues to slow marginally, it remains near double-digit levels.

It’s a similar story in the capital, with average asking rents in London reaching a new record of £2,567, and while the pace of rent growth has slowed slightly, it remains in double-digits for the seventh consecutive quarter. London rents are now 28 per cent higher than at this time in 2019.

Despite quickly rising prices, rental homes are continuing to let at speed and many landlords are still being met with long queues of prospective tenants wanting to view and rent their property.

The current average time to find a tenant for a home to rent is 17 days, its quickest since November 2022.

Tenant demand continues to exceed even last year’s frenetic levels and is currently three per cent higher than at this time in 2022 and 42 per cent higher than June 2019.

The gap between supply and demand has slightly narrowed compared to last year, with available properties to rent up by seven per cent compared with June 2022, though this figure remains 42 per cent below 2019.

Rightmove’s Director of Property Science Tim Bannister says: “The number of available properties to rent continues to improve compared to last year’s record low levels providing tenants with more choice, though with a long way to go to catch up with pre-pandemic levels of stock, there will continue to be more tenants looking to move than properties for them to move to for a while yet. 

“Average asking rents for new tenants have risen at a rapid pace since the pandemic reflecting the significant increase in demand, which is driven by a combination of factors including changed housing needs, such as some space to work from home. Landlords are currently having to navigate a multitude of challenges, but the data suggests it remains important to build long-term relationships with good tenants, with the majority of tenants choosing to stay in their property for longer than two years.”