Rents hit record high as landlords grow increasingly worried

Rents in Great Britain have reached a record high, with tenants paying £1,577 each month on average, data from Rightmove reveals.

Its Insight report shows that rents rose by 3% compared to the same period 12 months ago, which matches the projection made by the platform previously.

Even with fewer tenants hunting for places, the limited stock of properties available is pushing rents up.

Available rental stock has grown by 8% since last August but that’s the smallest rise seen this year – and 27% below the same month in pre-pandemic 2019.

Challenges for landlords

Rightmove’s property expert, Colleen Babcock, said: “There are challenges for both tenants and landlords in the current market.

“While tenants looking to move have more choice and less competition from other tenants compared with a few years ago, some may still find their options limited with rents at record levels.”

She added: “Meanwhile, landlords are bracing for big legislative changes in the Renters’ Rights Bill, and the rumoured tax changes have added an element of uncertainty heading into the autumn.”

Ms Babcock said that the PRS remains attractive for landlords, so tenants have comfortable homes to live in.

She continued: “If more landlords are driven out of the sector by more and more taxation, it will be tenants who lose out in the long run.”

Regional rent rises

The platform says that rent rises vary by region, and they have accelerated most in the North West at 10% annually, while London’s rents rose by just 2%.

With MPs debating the Renters’ Rights Bill once more, its potential impact, plus fears of higher property taxes, are worrying landlords.

One in three landlords say they are considering exiting the PRs in the future, and two-thirds (66%) say the government doesn’t support them.

Landlords are also looking to sell up because of new taxation and regulation (68%), and half (51%) say they retain their portfolio over the next 12 months.

The survey found that 20% of landlords are looking to grow their portfolio.

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