Average private rents in Great Britain have surged to unprecedented highs, marking a significant shift in the rental landscape. Walton-on-Thames in Surrey leads the charge with a staggering annual rental growth of 34.6%, while other regions such as Coventry and Reading report impressive growth figures of 19.5% and 19.1%, respectively. Despite some cooling since last year's peak, the market remains robust, with notable hotspots continuing to experience nearly 20% annual growth.
The rental market's current dynamics reflect a period of adjustment from last year's peak activity. In London, the pace of rent increases has decelerated noticeably since the summer of 2022 when annual growth reached 16.1%. However, the typical rent in the capital has hit a new high of £2,633, representing a 5.3% increase over the past year. This upward trend is mirrored outside London, where the average advertised rent has climbed to a record £1,291 per month, an 8.5% rise from the previous year.
Despite these increases, there are signs of market stabilization. Almost a third of the largest "top-of-the-ladder" homes have experienced rent reductions, marking the highest figure for such reductions in twelve years. This trend underscores a broader market recalibration, as nearly 50,000 additional rental properties are needed to restore supply to pre-pandemic levels.
“The rental market is no longer at peak boiling point, but it remains at a very hot simmer. Looking at data across the whole market, we can see some slow improvements for tenants, with more choice, and competition with other tenants slowly starting to ease.” – Tim Bannister, the website’s director of property science.
The demand for rental properties continues to outpace supply, contributing to the heightened competition among tenants. However, slight improvements have been observed as more properties become available, offering tenants a bit more choice and easing competitive pressures.