High demand and insufficient supply drive UK average rents to record levels

A new report has shown that the average rental asking price in the UK has reached a new record, as the availability of properties to rent continues to be outstripped by the sheer numbers of people enquiring about rental homes.

In news that will be of interest to many of those seeking out property to rent in Weybridge, Rightmove’s first-quarter rental trends tracker found that the average asking price per calendar month outside London had gone up by 10.8% over the last 12 months.

By way of comparison, in London itself, the last year has seen rental asking prices increase by 14.3%. This means that while the average rent outside the capital is now £1,088 a month – compared to £982 a year earlier – it is now £2,193 a month in London. Both figures are new records. 

“The most competitive rental market ever recorded”

When the data from the latest rental trends tracker are considered on a quarter-by-quarter basis, the average UK-wide asking rental price increased by 1.8%. 

Rightmove said that such fast-climbing rental costs could be attributed to a continuing mismatch between demand and supply, as there had been a 6% increase in tenant demand, all while the number of available rental properties had plummeted by 50% over the past year. 

In the words of the property firm, tenants seeking a new place to which to move were having to deal with “the most competitive rental market that Rightmove has ever recorded.” 

The company added that there was now more than triple the amount of tenants enquiring as there were available rental properties, which meant a “high likelihood of landlords being able to choose between multiple suitable tenants.” 

What does the longer-term picture look like for the rental market?

While the above statistics suggest a daunting situation for those on the lookout for a rental property, Rightmove said that the levels of demand showed “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.” 

It added that there were already some indicators that conditions might be easing, there having been a 5% rise in the number of rental properties coming onto the market last month when compared to January. From February to March, the increase was 16%. 

Would you appreciate the advice, guidance and support that could help you gain more out of your involvement in the Surrey rental market, whether you are a current or would-be landlord, or someone interested in property to rent in Weybridge or nearby? If so, our team would be delighted to help you; simply call or email our Surrey office today.