UK rental prices have reached new heights, with London leading the way at a record-breaking £2,698 per month. This marks the 14th consecutive month of new rent records for the capital.
Outside of London, the average advertised rent has also surged, climbing to £1,349 per month, another new high.
The figures from property site Rightmove (RMV.L) showed that the average advertised rent in London is now 2.5% higher than this time last year, despite an increase in the supply of rental homes. In March, the number of new properties coming onto the market was 11% higher than last year, while the total availability of rental homes is 18% above 2024 levels. Yet, the number of prospective tenants seeking to move is 7% lower than at the same time last year.
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Chippenham in Wiltshire has emerged as the country’s rental price hotspot, with rents up 16.4% from £930 to £1,082. Stockport, Greater Manchester, has also seen significant rent increases, up 16.1% from £982 to £1,141.
Over the past five years, rent increases have outpaced wage growth. Since 2020, average earnings have risen by 31%, while rents have jumped by 40%.
Rightmove’s property expert Colleen Babcock said: “The rental market is still really busy, and as the regional picture shows, it’s likely to feel even busier in some areas of Great Britain than others. It’s good news for tenants that on the whole, the balance between supply and demand is improving.
“This is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price.”
While the overall rental market shows signs of cooling, the number of tenants seeking to move is still 10% higher than pre-pandemic 2019 levels. In contrast, the number of available rental properties remains 33% lower, highlighting the ongoing supply-demand imbalance.
This has led to rental homes in Great Britain receiving an average of 12 enquiries this quarter — still more than double the five enquiries seen in the first quarter of 2019, although down from 16 at the start of last year.
Regional variations are also at play, with some areas experiencing higher demand than others. London, for example, has the best balance of supply and demand, although a typical rental home still receives eight applications. In the North West, however, the competition is fiercer, with 18 enquiries per property.
Christian Balshen, lettings expert at Rightmove said: “I don’t expect the Renters’ Rights Bill to have much of an impact on market activity, but there are a lot of wider implications for tenants and landlords. The banning of rent in advance for example, may make it more difficult for some types of tenants to secure a home, particularly in high-demand areas. Supply and demand in the rental market is really varied at the moment across Great Britain. The number one thing landlords will still want, is a good, reliable, long-term tenant, and there’s likely to be even more emphasis on this once the Bill comes into effect.”