Average Price: New Record
The average advertised rent of new properties coming onto the market hits a 17th consecutive record, with the average price of rental properties outside of London now £1,291 per calendar month (pcm). Average rental prices are now 8.5% higher than a year ago, however the pace of rent growth continues to slow and drops for the second quarter in a row.
Whilst the continued slowing in the pace of rent growth will be welcomed by affordability-constrained tenants, prices are still at record levels.
Supply & Demand
Although the balance of supply and demand is slowly improving, there are still nearly 50,000 rental properties needed to head back to the pre-pandemic level of rental supply. The latest market stats show that the number of rental properties available is 11% higher than at this time last year, though still 26% below 2019. Similarly, the number of would-be tenants looking for a home to rent has eased by 17% compared to last year but is still 54% higher than pre-pandemic 2019.
Letting agents are unable to meet the level of demand from tenants and are now fielding an average of 13 enquiries per rental property. Whilst this is down from 19 at this time last year, it is still nearly triple the average of five back in March 2019.
Useful Tips
In the current market, tenants are having to do more to have the best chance of securing a rental property. Rightmove’s property expert- Tim Bannister, shares some actions tenants can take to put themselves in the best position.
- Moving fast to set up a viewing is key. Having instant property alerts set up, and getting to know local estate agents, can help to make sure you’re one of the first to know about a new property.
- Having your finances and documents in order early is vital.
- Being flexible on a move-in date can be a very attractive addition to your application.
- Be clear about your non-negotiables from the start. This includes your max budget, the number of rooms you need, location, etc.
Regional Trends: North East
The average rent in the North East is £882pcm with a 1,9% increase since the last quarter (October to December 2023), and an increase of 9.8% since last year.
The average landlord yield for quarter 1 (2024) is 8.1%, which is also one of the highest in the country.
Quarterly Data
The dataset is compiled from the asking rents of properties coming onto the market on Rightmove.co.uk.
Rightmove measured 561,730 asking rents. The properties were advertised on Rightmove.co.uk by agents between 1st January – 31th March 2023. All short lets have been removed. All rents throughout are per calendar month.
Competition is calculated based on the number of people enquiring about each available property.
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Source: Rightmove
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