According to quarterly data from housing platform Rightmove, the average rent in London is currently £2,661 per month – 4% higher than a year ago.
Meanwhile, rents are rising even faster in the rest of the UK, with the average price of a property outside London up 7% year-on-year to £1,314 per month.
In the first quarter, rents in the capital reached a record high of £2,633 per calendar month, according to the same study, while the average price outside London was £1,291.
The numbers represent a new, depressing quarterly record. While the overall balance between supply and demand continued to improve in the second quarter of this year, the latest snapshot of the rental market shows how busy it still is compared to the more normal pre-pandemic levels. Both agents and renters are unlikely to see any improvements yet.
The number of inquiries each rental property receives from potential tenants is now 17. Although this is a decrease compared to the same period last year (26), it is more than double the eight inquiries at the same time in 2019.
This can be partly explained by the fact that the number of available properties is currently 14 percent higher than in the same period last year, Rightmove explained.
Despite these improvements, there is still a long way to go before we return to pre-pandemic supply and demand levels. The number of available rental apartments is still 20% below 2019 levels, and 22% more renters want to move than in 2019.
“The market remains unbalanced and difficult for tenants,” said Tim Bannister, director of property science at Rightmove.
“We need investment from landlords to increase stock and achieve a healthier balance between supply and demand in the market. There is an opportunity to encourage landlords to continue to invest in high-quality housing, for example through tax changes, incentives for energy-efficient upgrades or a general change in government sentiment towards working with and working with landlords.”
Read more: UK property prices rise again – a blow for first-time buyers
According to a recent study by Rightmove, around 120,000 additional rental properties are needed to bring rental price growth back to the more normal pre-pandemic levels of around 2-3% (based on current demand).
There have been some initial positive signs from the new government regarding an improvement in the rental market situation for tenants.
Labour has promised to build 1.5 million extra homes, which could improve the availability of rental housing for renters if some move into the private rented sector or more renters become first-time buyers.
The new data supports research published this week by the Skipton Group, which found that only one in eight renters can afford to buy in their local area.
Due to high rents, bills and property prices, it is more difficult for renters to purchase their first home than for existing owners to move out.
According to Oxford Economics’ new index, renters are four times less likely to be able to buy a home than homeowners.
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