Britain’s renters continue to face an uphill battle as recent figures from Rightmove PLC reveal a surge in rental prices, adding to their mounting concerns.
The latest data indicates that average advertised rents outside London soared to an unprecedented £1,314 per month in the second quarter of 2024. This represents a significant 7% increase compared to the previous year.
In London, the rental market also saw a new high, with average rents climbing to £2,661 per month, marking a 4% rise from the same period in 2023.
Although the data suggests a cooling from the 16% peak rent inflation seen in 2022, the market remains under strain due to persistent supply shortages.
On average, properties received 17 enquiries from prospective tenants during the quarter. While this is a decrease from 26 enquiries in 2023, it is still double the pre-pandemic figure of 2019.
The number of available rental properties has grown by 14% year-on-year. However, this increase still leaves the supply 20% below pre-Covid levels.
Rightmove reports that approximately 120,000 additional rental properties are needed to stabilize rental price growth to pre-pandemic rates.
The Labour Party’s commitment to constructing 1.5 million new homes over the next five years could potentially alleviate some of the pressure on the rental market. Nevertheless, Rightmove has emphasized the need for further government measures to support landlords and stimulate investment in the private rental sector.
Tim Bannister, Rightmove’s director of property science, commented: “With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants. We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market.”
Bannister suggested various measures to encourage landlord investment, such as tax changes, incentives for energy-efficient upgrades, and a more cooperative approach from the government towards landlords.
Regionally, the North East experienced the highest rent inflation in the second quarter at 10.3%, followed by the West Midlands at 9.3% and Scotland at 7.9%.
The ongoing challenges in the rental market highlight the urgent need for coordinated efforts to boost supply and manage demand, ensuring a more balanced and accessible housing environment for Britain’s renters.