Asking rents have hit new record highs as the supply of available homes for tenants to choose from remains constrained, according to a property website.
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tenants → ask → website
The typical asking rent for a home outside London rose to a new record of £1,418 per calendar month in the third quarter of this year.
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rent → ask → year
While rents continue to rise, rental price growth has stabilised, compared with the intense competition seen at a recent peak in the market, the website said.
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website → continue → market
The annual increase in asking rents in the third quarter was 2.4%.
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increase → ask → quarter
Between 2021 and 2023, annual rental growth hovered at around 10%, Rightmove said.
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Rightmove → hover → %
The number of available rental homes is 2% lower than a year ago, while renter demand is also down by around 2%, the website added.
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website → add → %
The average asking rent in London reached a new record of £2,825 per calendar month, with annual rental growth there at 3.2% – a faster pace than the 2.4% growth seen outside London.
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rent → ask → London
Higher rents in London appear to be driven by a more pronounced supply squeeze, Rightmove said.
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Rightmove → appear → squeeze
The number of available homes to rent in London is down by 9% compared with a year ago, while renter demand has increased by 6% annually.
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demand → rent → %
Elevated mortgage rates continue to make property investment less attractive for prospective landlords, Rightmove said.
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Rightmove → continue → landlords
Colleen Babcock, a property expert at Rightmove, said: “Average rents have reached another new record and have now surpassed £1,400 per month outside London for the first time.
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rents → say → time
However, beneath the headline figure, rental growth has continued to settle compared with the exceptionally fast pace we saw a few years ago.
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we → continue → pace
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“Supply remains constrained, which is continuing to put upward pressure on rents, but demand is also more measured.
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demand → read → rents
“That has helped to create a more balanced market overall, even though affordability remains a challenge for many renters.”
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affordability → help → renters
“New buy-to-let investment has been relatively subdued for some time, and some landlords are still reaching the end of much cheaper fixed-rate deals taken out when borrowing costs were lower.
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costs → buy → deals
“For those landlords, moving onto a higher mortgage rate can have a significant impact on monthly costs and rental yields.”
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moving → move → costs
Kesha Foss-Smith, head of lettings at John D Wood & Co, said: “Despite tighter supply, value for money remains critical.
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value → say → money
“Looking ahead, maintaining a healthy supply of rental homes will be key to easing competition and supporting long-term market stability.”
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maintaining → look → stability
Richard Antrobus, director at VitalSpace, said: “The rental market in south Manchester remains highly competitive, with demand continuing to outstrip the supply of quality homes.”
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demand → say → homes
Aneisha Beveridge, head of research at Hamptons, said: “Asking rents are useful for taking the temperature of the market, but they only tell part of the story.
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they → say → story
“Increasingly, some of the largest rent rises are happening within existing tenancies as landlords seek to narrow the gap between long-standing rents and current market levels.”
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landlords → happen → rents
She added: “In many cases, landlords are catching up rather than pushing rents materially beyond the market rate.”
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landlords → add → rate
Ms Beveridge said: “The fundamental issue remains a shortage of rental homes.
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issue → say → homes
“While rental growth has cooled from the frenzied levels seen a few years ago, the supply of available homes remains constrained, which continues to put upward pressure on rents across much of the country.”
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which → cool → country
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