Rents Surge Past £1,400 Monthly Outside London Amid Supply Squeeze
Average advertised rents across Britain hit new highs in Q3 as available housing stock declines and mortgage rates deter new landlords.
Callum Smith
Average advertised rents across Britain, excluding London, surpassed £1,400 per month for the first time in Q3.
A surge intensified competition among tenants, with the available rental housing stock falling by 2 percent compared to the previous year.
Asking rents reached new record highs; the supply of available homes for tenants remained constrained.
In London, the average asking rent hit a record £2,825 per calendar month, propelled by an even more acute supply squeeze.
Colleen Babcock confirmed average rents reached another new record, surpassing £1,400 per month outside London for the first time.
However, Babcock also noted that beneath this headline figure, rental growth continued to settle compared with the exceptionally fast pace observed a few years ago.
The fundamental issue remains a shortage of rental homes.
The market is understood to be experiencing a stabilization in rental price growth, contrasting with the intense competition seen at a recent peak.
Between 2021 and 2023, annual rental growth reportedly hovered at around 10%.
Aneisha Beveridge stated that asking rents are useful for taking the temperature of the market but only tell part of the story.
Beveridge claimed some of the largest rent rises increasingly occur within existing tenancies, as landlords aim to narrow the gap between long-standing rents and current market levels.
She added that in many cases, landlords are catching up rather than pushing rents materially beyond the market rate.
The fundamental issue, Beveridge asserted, remains a shortage of rental homes.
Elevated mortgage rates continue to make property investment less attractive for prospective landlords, reportedly contributing to the supply crunch.
Matt Smith highlighted that managing existing properties when it is time to remortgage presents one of the biggest challenges for many landlords.
Smith explained that moving onto a higher mortgage rate can significantly impact monthly costs and rental yields for these landlords.
Richard Antrobus confirmed the rental market in south Manchester remains highly competitive, with demand continuing to outstrip the supply of quality homes.
Supply remains constrained, which continues to put upward pressure on rents, but demand is also more measured. This has helped create a more balanced market overall, even though affordability remains a challenge for many renters.
Colleen Babcock reiterated that supply remains constrained, which continues to put upward pressure on rents, but demand is also more measured.
This has helped create a more balanced market overall, even though affordability remains a challenge for many renters, Babcock concluded.
Kesha Foss-Smith emphasized that despite tighter supply, value for money remains critical.
Tenants are increasingly discerning, especially at the upper end of the market, making realistic pricing and high-quality presentation essential, Foss-Smith added.
Looking ahead, Foss-Smith stated that maintaining a healthy supply of rental homes will be key to easing competition and supporting long-term market stability.