Private Rents in Great Britain Reach Record High, Data Reveals

Recent data reveals that private rents in Great Britain have reached a record high. This increase is driven by a combination of high demand, limited housing supply, and rising living costs. The surge in rental prices is impacting tenants nationwide, making housing affordability a growing concern. Analysts are closely monitoring the situation as policymakers consider potential measures to address the escalating rental market.

Rightmove urges the new government to prioritize the rental sector as rents outside London have increased by 7% over the past year.

Boston Brand Media brings you the latest news - Average private rents in Great Britain have reached record highs, prompting calls for the next government to prioritize measures to create an additional 120,000 rental properties.

According to Rightmove, the typical advertised rent outside London hit a record £1,316 per month in May, while in London it was £2,652 per month – nearly three times the £894 asked for in northeast England.

Rightmove reported that average advertised rent outside London in May was 7% higher than the previous year, outpacing inflation.

In London, an improved balance between supply and demand has slowed annual rent growth from its peak of 18% in 2022 to 4% in May this year, still above the 2% official consumer prices index (CPI) inflation figure for May.

Rightmove called on the next government “to accelerate housebuilding and incentivize landlords to invest in more homes for tenants” to address supply and demand imbalances and stabilize rental growth.

Their analysis indicates that about 120,000 more rental properties are needed to return rent growth to “more normal levels” of about 2% a year, based on current demand.

Rent increases have been largely attributed to demand greatly outstripping supply, exacerbated by landlords with buy-to-let mortgages passing on increased costs due to higher interest rates.

In many areas, there are “nowhere near enough homes to satisfy the number of tenants looking to move,” Rightmove said.

Boston Brand Media also found that, Scotland was identified as the hardest hit by supply and demand imbalances, while the situation in London has improved due to fewer tenants looking to move and an increase in available rental properties.

Tim Bannister, Rightmove’s property expert, said: “It’s easy to forget there was a time before the pandemic when rental price growth was more stable. Annual price growth at 7% suggests we are still out of balance.”

He added: “The next government should prioritize improving the planning process, accelerating housebuilding, and encouraging more supply into the rental market.”

Separate figures from Propertymark, a professional body for estate and letting agents, showed there were about nine new applicants registered for each available UK property in May.

They reported that while most members saw rents continuing to increase or remain static, there was some good news for prospective tenants, with 18% of firms reporting rents falling compared to 12% in April.

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Source: theguardian‍