Average asking rent in London reaches new record high of £2,825 as supply falls
Annual rental growth is at 3.2% in the capital – a faster pace than the 2.4% growth seen outside London.
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growth → reach → London
The supply of available homes for tenants to choose from in the UK remains constrained, with the average monthly private advertised rent, excluding London, topping £1,400 for the first time, Rightmove said.
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Rightmove → choose → time
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 in Britain 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 → %
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
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“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 → read → pace
“Supply remains constrained, which is continuing to put upward pressure on rents, but demand is also more measured.
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demand → remain → 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
Matt Smith, a mortgage expert at Rightmove, said: “One of the biggest challenges for many landlords at the moment is managing the properties they already own when the time to remortgage comes around.
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time → say → properties
“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
Tenants are increasingly discerning, especially at the upper end of the market, making realistic pricing and high-quality presentation essential.
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pricing → discern → market
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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