The average rent in London has risen to a new record of £2,661, up from £2,567 last year, representing a rise of four percent. Rents on offer outside London have also risen by seven percent to a new record of £1,314 per month. According to one website, each property typically receives 17 enquiries from potential tenants.
According to Rightmove, the average monthly rent offered across the UK (excluding London) a year ago was £1,231.
Although the overall supply of rental properties is slowly improving compared to last year, the number of available properties is still below pre-coronavirus pandemic levels, according to Rightmove.
The latest rental figures refer to the second quarter of 2024.
We need investment from landlords to increase inventory and achieve a healthier balance between supply and demand in the market
Tim Bannister, Rightmove
Enquiries are down on last year (26 per property), tenant demand is down 16 percent while the number of available properties is up 14 percent. Yet rents continue to rise. Tim Bannister, director of property science at Rightmove, said: “With 17 enquiries per available rental property, the market remains unbalanced and difficult for tenants.”
“We need investment from landlords to increase inventory and achieve a healthier balance between supply and demand in the market.
“To achieve long-term stability in the rental market, support for both tenants and landlords is crucial.”
A new study by the Adam Smith Institute shows that London renters have to work an average of 197 days a year to pay their rent to their landlord before they can start saving for themselves.
Richard Lane, senior account manager at debt support charity StepChange, said: “Our research shows that the financial situation of many renters is becoming increasingly precarious – one in three private renters have taken out a loan to pay their rent in the past year, while one in two private renters are struggling to meet their bills and loan obligations.”
He added: “For those facing rent arrears or financial difficulties, there is specialist support available. A debt advice service such as StepChange can go through your budget and identify where you can save to pay your rent, which is considered a priority debt.”
