The average asking rent for private rental homes across Britain reached a new record high in the second quarter of 2024, according to property website Rightmove.
Record Rents Outside London
Excluding London, the average advertised private rent on a home coming onto the market rose to £1,397 per month in the second quarter. This represents a 1.9% increase from the previous quarter and a 2.3% rise compared to the same period last year.
London Rents Surge
In London, the average advertised private rent hit a record £2,791 per month. This was 2.0% higher than the previous quarter and 2.9% higher annually.
Supply and Demand Dynamics
Rightmove reported that the number of homes available to rent is 1% lower than a year ago. The decline in rental supply appears to be driven more by a drop in newly-listed properties rather than an increase in the speed of the market.
Competition between tenants remains significantly lower than at its peak. The average rental home now receives 10 inquiries, compared with 11 a year ago and 22 in 2022, according to the report.
Regional Variations
There are notable regional differences. London rental properties attract an average of eight inquiries, whereas properties in the North West of England typically receive 14 inquiries per rental property, Rightmove added.
Colleen Babcock, a property expert at Rightmove, said: “Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022. Regional trends also continue to vary significantly across the country, with more affordable northern areas still seeing some of the strongest rental growth.”
Impact of Falling Mortgage Rates
David Fell, lead analyst at Hamptons, commented: “Falling mortgage rates in recent weeks have given landlords some breathing room, enticing those whose fixed deals are coming to an end to relet rather than sell up, preventing a more severe supply crunch. For tenants thinking about buying, these lower rates are pushing monthly mortgage payments below the level of the rent they are paying. This exit of longer-term renters and the strength of the first-time buyer market should help ease persistent rental demand.”
