0:01 AM, 29th April 2025, About 3 weeks ago
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Rents across the UK have surged to new highs with the average advertised rent for properties outside London climbing to £1,349 this quarter, Rightmove reveals.
The property platform says that prices in the capital have edged up by a modest £3, or 0.1%, to £2,698, marking a 14th consecutive record.
Despite these highs, the growth in rents is the slowest for this period since 2020, hinting at a shifting market dynamic, it says.
There was also a notable increase in available properties with March seeing a rise in new listings compared to last year.
The total number of rental homes is now 18% higher.
Christian Balshen, Rightmove’s lettings expert, said: “I don’t expect the Renters’ Rights Bill to have much of an impact on market activity, but there are a lot of wider implications for tenants and landlords.
“The banning of rent in advance for example, may make it more difficult for some types of tenants to secure a home, particularly in high-demand areas.
“Supply and demand in the rental market is really varied at the moment across Great Britain.”
He adds: “The number one thing landlords will still want, is a good, reliable, long-term tenant, and there’s likely to be even more emphasis on this once the Bill comes into effect.”
However, Rightmove warns that tenant interest has waned, with 7% fewer prospective renters seeking to relocate compared to March 2023.
This cooling demand is partly attributed to a surge in first-time buyer activity, bolstered by a 7% rise in sales and a 5% increase in new buyer enquiries.
Improved mortgage rates and a rush to beat the stamp duty hike in England from 1 April helped to push renters towards buying.
Rightmove also reveals that a typical rental property attracted 12 enquiries this quarter, down from 16 last year but still over double the five seen in early 2019.
Regional disparities are evident: London properties average eight enquiries, while those in the North West face 18.
This softening market has led to a quarter of rental homes seeing price reductions, the highest proportion since 2018.
Over the past five years, rent rises have outstripped wage growth, with rents rising 40% since 2020 compared to a 31% rise in earnings.
Meanwhile, buy to let lending has surged, with new loans up 32% year-on-year, supporting the influx of rental properties.
Marc von Grundherr, a director at Benham & Reeves, said: “We’ve seen a strong start to the year, with a surge in new listings entering the market, while tenant demand levels remain robust.
“The majority of landlords haven’t been particularly phased by the Renters’ Rights Bill.”
He added: “In essence, those providing good quality accommodation have little to worry about.
“Rental values have continued to climb which suggests that demand is still outstripping supply.
“International tenants remain a significant driving force within the London rental market, while the return to the physical workplace also remains a key factor.”
The president of Arla Propertymark, Angharad Trueman, said: “Despite reports of a recent rise in the supply of privately rented homes, we continue to battle against a long-standing and critical imbalance in the number of homes available to rent and a rise in tenant demand.
“Fundamentally, this spike is not enough to meet demand long-term, and we are unlikely to see any improvement in rent levels without the acknowledgment from various governments across the entire UK as to the importance that the private rented sector plays in housing the nation and the introduction of incentives for landlords to invest in the sector.”
