Average asking rents across Britain have surged to an unprecedented high, with a new record being reached in the second quarter of this year, a property website has revealed.
Excluding London, the average advertised private rent for homes entering the market now stands at £1,397 per month, according to Rightmove.
This figure represents a 1.9 per cent increase on the previous quarter and a 2.3 per cent rise year-on-year.
In London, the average advertised private rent reached a record £2,791 per month.
This was 2.0% higher compared with the previous quarter and a 2.9% annual increase.
The data comes after incoming prime minster Andy Burnham’s pledge to tackle the cost of living when he takes over, telling LBC earlier this month that the government needs to “be serious about putting more money back into people’s pockets.”
Mr Burnham has not publicly committed to an immediate action on rental costs. However, in 2023, he co-signed an open letter to then-housing secretary Michael Gove to “introduce an immediate freeze on rents” in the wake of the Covid pandemic.
In recent months, the incoming prime minister has promised the “biggest council housebuilding programme since the postwar period” when he comes into power, a policy which – if successful – could be instrumental in bringing down housing costs in the longer-term.
Rightmove said the number of homes to rent is 1% lower than a year ago, with the fall in rental supply appearing to be driven more by a drop in newly-listed properties for rent, rather than an increase in the speed of the market.
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Competition between tenants remains significantly lower than at its peak, with the average rental home now receiving 10 inquiries, compared with 11 a year ago and 22 in 2022, the report said.
There are regional variations, with London rental properties having an average of eight inquiries, compared with 14 inquiries per rental property typically in the North West of England, 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.”
David Fell, lead analyst at Hamptons, said: “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.”
