National asking rents for properties outside London have seen a record increase, according to the latest research.
Rightmove’s quarterly rental trends tracker, published today, suggests that increases are due to an imbalance between high tenant demand and low number of properties available.
The average rent in Britain is now £1,088 a month, up 10.8 per cent from £982 last year.
London is excluded from this average, where a typical monthly rent is £2,193, an increase of 14.3 per cent since last year.
This comes as tenant demand is up six per cent while the number of rental properties is 50 per cent lower than a year ago.
The mismatch between supply and demand has been a recurring challenge for landlords and tenants, with changing behaviour and declining investment from landlords during the pandemic.
Now average rents are now 15 per cent higher than the same period two years ago, just as the UK entered the first national lockdown.
Nine regions have seen a more than 10 per cent rise in asking rents compared to last year.
Here’s an overview of the top five rental hotspots:
Low average asking rents for properties within commuting distance of major cities for work or leisure are a key factor influencing a rise in rent and demand for these areas.
Rightmove’s data shows an 81 per cent increase in tenant demand, when compared to the pre-pandemic market in 2019.
This comes at the same time as available rental properties in London are down 47 per cent, making it an increasingly competitive market for tenants.
When it comes to the average rental yield for 2022 so far, Rightmove’s research shows the best regions for buy-to-let landlords.
Here are the top three regions for rental yield:
Rightmove’s Director of Property Data Tim Bannister said: “There are several factors affecting supply and demand. On the supply side, we’re hearing from agents and landlords that tenants are signing longer leases, which has prevented some of the stock that would normally come back onto the market from doing so.
“When it comes to demand, we’re still seeing the effects of the pandemic, whereby tenants are balancing what they need from a home and how close they need to live to work with where they can afford.”
Have you seen rents increase in your region? Let us know in the comments below.
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