New research by Rightmove has found that supply shortages and mortgage rate rises have combined to push the cost of private home rents up by 10% over the past 12 months.
The average rent for new properties being put on the market now stands at a record £1,278 per calendar month outside London in the July to September period, according to Rightmove.
The average advertised rent in the capital also hit a new high in the past quarter – £2,627 a month – a 12.1% increase on the same time last year. This comes at a time when the average rental property receives three times more enquiries from prospective tenants than in 2019.
Rightmove says an overall shortage of available rental properties was driving up prices. The average rental property across Great Britain is now receiving 25 inquiries from prospective tenants to letting agents.
Rightmove’s Director, Tim Bannister, said “Record rents and far more tenants looking to move than there are homes available means it will still feel very difficult for many tenants navigating the market.”
“However, there are signs that some of the pressure between supply and demand is beginning to ease, with the number of new rental properties coming to the market now at its highest level since the end of last year.”
“While it is likely that there is some way to go before this filters through to rental prices, if the improving trend between supply and demand continues, we could start to see the pace of yearly rent rises slow more significantly than it has been.”