‘Record High Monthly Rents for UK Private Properties, According to Property Site Report’
According to Rightmove, rents outside London have increased by around 7 percent since last year, reaching an average of £1,316 per month.
Rightmove reported on Wednesday that average monthly rents in the UK have hit record highs. Private rents outside London have risen to £1,316, an increase of about 7 percent from a year ago, based on analysis for May.
In London, the average advertised rent is £2,652 per month, up 4 percent from the previous year.
These figures exceed the inflation rate, which dropped to 2 percent in May.
Rightmove is calling on the next government to focus on increasing housebuilding and encouraging landlords to invest in more properties for tenants to improve the rental market equilibrium and stabilize annual rent growth.
The pace of rental price growth has slowed down from its peak of 12 percent two years ago but remains significantly higher than the pre-COVID-19 lockdown average of around 2 percent per year. This is attributed to better supply and demand balance in London reigniting the rental price growth.
Scotland is facing the toughest challenge with demand outweighing supply currently.
Rightmove property expert Tim Bannister emphasized the need for an improvement in the planning process, acceleration of house building, and increased supply in the rental market by the government.
Persuading Investors
Data from Propertymark revealed that around nine new applicants registered for each available UK property in May.
While most members reported rising or stable rents, there was a positive note for prospective tenants as 18 percent of firms reported a decrease in rents in May compared to 12 percent in April.
Propertymark CEO Nathan Emerson stated, “The private rental sector needs more houses to stabilize rental prices, alongside other factors that can make the market more attractive for investors and tenants.”
With a general election approaching, Propertymark is seeking reforms in the tax system to encourage more investors to invest in the private rental sector and ultimately lower rents in the long term.
Even though interest rates remain high, house prices are only 3 percent lower than the highest recorded price set in the summer of 2022.
Propertymark reported that the average UK house price in April was £281,373, approximately eight times the average annual gross income.
Adam Brax and PA Media contributed to this report.
