Average private rents in the UK have risen to record highs, data shows, although the amount demanded from new tenants has fallen slightly in some areas.
Typical private rental rates for new properties coming onto the market outside London rose to a record level of £1,280 per calendar month in the final quarter of 2023, according to property website Rightmove. This is £2 higher than the £1,278 recorded in the third quarter and shows rental growth is slowing.
Average advertised rents in London suburbs were 9.2% higher than a year ago, but there were early signs this year could offer a “better experience for many tenants looking to secure a rental property”, says Rightmove. said.
Seemingly inexorable rises in rents are increasing pressure on household budgets, but the website says more tenants are reaching the “upper end of affordability” and more landlords are having to reduce their asking prices. He said there is evidence that.
London's average rent has also reached a new high of £2,631, although the city's annual rent growth rate has halved in recent months.
Rightmove's data shows that overall numbers vary widely across regions, with some places still experiencing runaway increases in the typical amount paid by new tenants, while others have seen a slight decline. It suggests that you are hiding.
Surrey hotspots such as Walton-on-Thames, Coventry and Luton saw annual rental growth of 36.8%, 24.9% and 21% respectively. Other areas reporting at least 20% growth include Preston and Dundee in Lancashire and Salford in Greater Manchester.
The data also showed that average advertised rents fell slightly between 0.4 and 0.9 per cent between October and December 2023 compared to the previous three months in three regions: South East England, South West England and Scotland. .
The trend of improving real estate supply and easing tenant demand continues. Although the number of people contacting letting agents about moving is down 13% compared to the same period last year, the number of new rental properties being put on the market is up 7%.
The data shows that almost a quarter (23%) of properties have had their originally advertised rent reduced, up from 16% this time last year, and in some cases the asking price has been reduced to “ Rightmove said this suggests that the world is becoming increasingly unaffordable. .
Tim Bannister, the website's director of real estate science, said: “The trend of gradual slowing in rent growth continues, with a significant contribution from improved supply and demand for rental properties.”
“We cannot continue to see double-digit rent increases every year because tenant affordability cannot keep up. By 2024, published rent increases will be much smaller, reaching 5% outside London and 3% in the capital. I think it will happen.''