According to Rightmove, the average advertised rent of new properties coming onto the market outside of London is now £1,314 per calendar month. That’s 7% higher than a year ago.
Average advertised rents in London have also risen to a record level of £2,661, 4% higher than last year.
Supply and demand
The balance between supply and demand has improved during the second quarter of this year, but Rightmove noted that it might be too soon for letting agents and tenants to feel any improvements yet.
The number of enquiries each rental property is receiving from prospective tenants is down to 17 from 26 this time last year. But this is still more than double the eight tenants per property recorded in 2019.
The slowing in the number of enquiries per property is driven by more rental properties becoming available, and fewer tenants looking to move.
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The number of available properties is currently 14% higher than this time last year, but still 20% below 2019, while 22% more tenants are looking to move than in 2019.
Tim Bannister, Rightmove’s director of property science, said: “With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants.
“We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market. There is an opportunity to encourage landlords to continue to invest in good-quality homes, for example through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in Government towards working alongside and with landlords.
“Landlords have previously told us that the Government’s perception of landlords is one of their main concerns about the sector. Support for both tenants and landlords will be key to achieving long-term stability in the rental market.”
‘Private rented sector is not working’
Richard Lane, chief client officer at StepChange, said: “These figures show that the private rented sector is not working as it should for millions of tenants. We need the new Government to act quickly to bring in reforms that strengthen protections for those who are struggling. It was encouraging to see a new Renters’ Rights Bill introduced in last week’s King’s Speech, as the majority of people we see seeking help with problem debt live in the PRS, so it’s a sector that desperately needs reform.
“Our research shows that many tenants’ financial situations are becoming increasingly precarious – one in three (31%) private renters has used credit to afford their rent in the past year, while one in two (50%) private renters is finding it difficult to keep up with bills and credit commitments. To protect renters from eviction when they fall on hard times, we need to ensure that financial difficulties don’t leave tenants at risk of losing their homes. That is why we welcome the new Government’s commitment to ending Section 21 ‘no-fault’ evictions, but reforms to grounds for possession need to have security of tenure at their heart, avoiding loopholes that could lead to backdoor evictions.”
This article was first published on YourMoney.com‘s sister site, Your Mortgage. Read: Average rent hits record high of £1,314 a month
