Rents hit record high as property supply falls

Advertised rents have reached record highs in London and the rest of Great Britain after the number of available homes fell below last year’s level for the first time since 2022.

Rightmove says the average advertised rent outside the capital rose by 1.9% during the second quarter to £1,397 a month, the first quarterly record since the third quarter of 2025.

The figure is 2.3% higher than a year ago, compared with annual growth of 1.6% during the previous quarter.

London rents increased by 2% over the quarter to a record £2,791 a month.

It was the capital’s largest quarterly rise since 2023, driven by increases in inner London, while annual growth reached 2.9%.

Average rent record

The platform’s property expert, Colleen Babcock, said: “We’re seeing new record average rents advertised in both London and Great Britain outside of the capital, however overall, we’re seeing rents return to more familiar seasonal patterns and stable growth.

“Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022.”

She added: “Regional trends also continue to vary significantly across the country, with more affordable northern areas still seeing some of the strongest rental growth.

“London has seen a notable increase in rents this quarter, and also the largest drop in available rental supply, underlining how local supply and demand dynamics continue to shape rental pricing.”

Rental home supply falls

The number of homes available to rent nationally was 1% lower than a year earlier during the quarter, ending a period of annual supply growth that began in 2022.

Rightmove attributed the decline to fewer newly listed properties, rather than homes being taken off the market more quickly.

A typical available home for rent received 10 enquiries, down from 11 a year ago and 22 at the height of tenant competition in 2022.

Before the pandemic, the average was five enquiries for each property.

Tenant enquiries rise

Annual advertised rent growth reached 4.1% in both the North East and North West, compared with 1.5% in the East Midlands and East of England.

London recorded an average of eight enquiries for each available home, the lowest figure among the regions measured.

The North West had the highest, at 14 enquiries for each property.

Its daily buy to let mortgage tracker put the average mortgage rate at 5.55%, down from 5.67% a month earlier but above the 5.20% recorded a year ago.

Annual wage growth eased to 4.4%, with the platform reporting that tenants were becoming more price-conscious, particularly in more expensive areas.