Average rent surges to £2,712 in London and £1,365 across UK
The cost of rent in London has climbed for a 15th consecutive quarter to hit a record high of £2,712 per month, while tenants across the rest of the UK are paying on average £1,365.
The data from property site Rightmove (RMV.L) showed that new tenants are now paying an average of £417 more in monthly rent compared to 2020. This is a 44% increase in rents, well above the 36% rise in average earnings over the same period.
Rightmove’s property expert Colleen Babcock said: “Despite another new record in average asking rents for tenants, the big picture is that yearly rent increases continue to slow, which is good news for tenants.”
“Supply and demand is slowly rebalancing towards more normal levels, though we still have a way to go before we reach pre-2020 levels of available homes for tenants. The good news is that the latest industry snapshot suggests more investors are taking out buy-to-let loans compared with last year, which should help to bring even more homes to the rental market.”
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Commuter belt towns and traditionally lower-rent northern regions saw the steepest increases. Ascot in Berkshire saw the largest annual jump, with average rents climbing 21% from £1,863 to £2,259 year-on-year. Farnham in Surrey followed closely with a 19% increase, amid strong demand in affluent areas within commuting distance of London.
Northern towns such as Rochdale and Stockport in Greater Manchester saw rents rise by 17% and 15% respectively, pushed by a combination of low base prices and growing demand from remote workers seeking affordability. Glasgow, Scotland’s largest city, also registered a 12% rise to £1,219 per month.
Several towns in the North West, including Birkenhead and Prenton on the Wirral, recorded rent increases of 11%, amid a wider trend of price pressures moving beyond traditional hotspots.
Watford, Andover, and Kidderminster each saw double-digit increases.
Average advertised rents for new properties in London rose by 0.5% this quarter to £2,712 per calendar month, a 15th consecutive record for rents in the capital.
The number of available rental homes has risen by 15% compared to last year, with the North East seeing the largest jump (33%). Despite this, the number of available properties remains 29% below pre-pandemic levels.
At the same time, tenant demand has dropped by 10% year-on-year, leading to a reduction in competition for rental properties. The average number of enquiries per typical rental property now stands at 11, down from 16 last year, but still higher than the 7 enquiries per property in 2019.