Credit, Collections & Insolvency News
New data from Rightmove has shown that average advertised rents outside of London hit a new all-time high of £1,314 per calendar month in the second quarter of 2024, according to the online property platform, indicating a 7% jump from the previous year.
In London, rents hit a new record of £2,661, 4% above the same period in 2023.The North East witnessed the highest year-on-year rent inflation in the second quarter at 10.3%, followed by the West Midlands at 9.3% and Scotland at 7.9%.
These figures show that rent inflation has come down steadily from the 16% peak witnessed in 2022, supply remains considerably bottlenecked. Properties received an average of 17 enquiries from would-be tenants in the quarter, which is down from 26 in 2023 but double the amount in 2019.
The amount of rental properties has improved 14% year on year but still remains 20% lower than pre-Covid levels. According to Rightmove, around 120,000 more rental properties are needed to bring rental price growth back to pre-pandemic levels.
Rightmove’s Director of Property Science Tim Bannister 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.”
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.”
