Private Rents Outside London Soar by a Third in Four Years
In the realm of Great Britain, private rents have ascended to unprecedented heights, reaching fresh all-time peaks, as per data released by Rightmove. The average rental amount sought beyond the confines of London has surged by one-third compared to four years ago.
Despite rental growth outpacing inflation by a substantial margin, homes continue to be leased swiftly, with many landlords experiencing a surplus of eager prospective tenants keen on inspecting and renting their properties.
Rightmove divulges that the typical advertised private rent in areas outside London has now reached a new pinnacle of £1,231 per calendar month, while the corresponding figure in the capital surpasses that by more than double, amounting to £2,567. Notably, annual rental growth in sought-after locations like Edinburgh and Luton is currently exceeding 20%.
This sharp escalation has predominantly been attributed to a demand-supply imbalance, with demand far outstripping the available supply, a situation further exacerbated by landlords with buy-to-let mortgages seeking to offset steep rises in their expenses prompted by higher interest rates. The considerable surge in the cost of new fixed-rate home loan deals has compelled some to augment rents, while others have chosen to divest themselves of their properties altogether.
Average advertised rent in Great Britain hits all-time high at £1,231/month outside capital.
Rightmove observes that tenant demand persists at levels that surpass even the frenetic levels seen in the preceding year, standing 3% higher than the corresponding period in 2022, and a remarkable 42% higher than in June 2019.
Furthermore, the average rental property is now being leased out within a mere 17 days, the shortest period recorded since November 2022. Average asking rents outside London have escalated by 9.3% in June compared to the previous year.
In certain other cities and towns, the annual rental increases have been even more pronounced, intensifying the pressure on those seeking accommodation. In Edinburgh, the average advertised rents have surged by an astonishing 24.2% in the past year, while in Luton, Bedfordshire, the annual increase reached 22.4%, and in Staines, Surrey, it reached 20.3%.
Tim Bannister, the director of property science innovation at Rightmove, conjectured that this phenomenon would persist for some time, with a greater number of tenants seeking accommodation than available properties.
The rapid pace of growth in average asking rents for new tenants since the pandemic has been reflective of the significant surge in demand, driven by various factors, including shifting housing needs, such as the desire for space to work from home.
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