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. Outside London, the average advertised rent hit £1,397 per month, a 1.9% increase from the previous quarter and a 2.3% rise year-on-year. In London, the average rent climbed to £2,791 per month, up 2.0% quarterly and 2.9% annually.
Rental Supply and Competition
Rightmove reported that the number of homes available for rent is 1% lower than a year ago, with the decline driven more by a drop in new listings rather than faster market turnover. Competition among tenants has eased significantly from its peak: the average rental property now receives 10 inquiries, down from 11 a year ago and sharply lower than the 22 inquiries seen in 2022.
Regional Variations
Regional differences persist, with London properties attracting an average of eight inquiries, while the North West of England sees 14 inquiries per rental property. 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."
Landlord and Tenant Dynamics
David Fell, lead analyst at Hamptons, noted that falling mortgage rates have provided some relief for landlords. "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," he said. Fell added that for tenants considering buying, lower mortgage rates are making monthly payments more competitive with rents, potentially easing rental demand as longer-term renters exit the market.
