Average private rents in Britain have reached record highs, with the latest figures from the property website Rightmove showing a jump of 11.8% outside London and 15.8% in the capital. The data, covering the period from April to June, revealed that the average advertised rent outside London now stands at £1,126 per calendar month.
Manchester emerged as the rental price hotspot, with average asking rents climbing 23.4% year on year, from £913 to £1,127. Other significant rises were recorded in Chatham, Kent (21.4%), and Liverpool (19.4%). Seaside towns also saw above-average increases, including Weymouth (19.1%), Torquay (18%), and Margate (16.9%).
The increases add to the pressure on household finances amid the cost of living crisis. Rightmove attributed the rises to rental demand greatly outstripping supply, leading to intense competition among tenants. Rising interest rates have also fed through to tenants, with many landlords on tracker rates.
The market has also been shaped by pandemic-era shifts, as tenants reassess their preferences and many seek homes in the suburbs, countryside, or by the coast. In London, however, rents are bouncing back dramatically after tumbling by up to 20% earlier in the pandemic. The return to offices, an increase in overseas students, and companies relocating or expanding have all contributed to the resurgence.
Richard Davies, managing director of estate agent Chestertons, said: “Those who secured a property at a discounted rental rate during the pandemic are keen to hold on to this deal as long as possible, particularly in the face of rising living costs.” He added that this has “created an extremely competitive market for tenants, where many offer landlords over asking price in order to secure a property”.
Rightmove reported that the stock of available rental properties is down 26% compared with last year, while demand is up 6%. Average monthly rental payments are now 40% higher than a decade ago, compared with a 13% rise in typical mortgage payments for the same properties. An estimated 11 million people rent privately in England alone, with the sector having doubled in size over the past 20 years.
