The average rental asking price in the UK has jumped to a new record as demand continues to outstrip properties on the market, according to a report.
Property firm Rightmove’s first-quarter rental trends tracker found the average asking price per calendar month shot up by 10.8% year-on-year to reach £1,088 outside London.
In London, prices have risen by 14.3% in the last year, with the average monthly rent sitting at £2,193.
This marks the first time that rents outside of London rose by more than 10% annually, while the leap in the capital was the largest of any region on record.
On a quarter-on-quarter basis, UK asking rents rose by 1.8% in the first three months of the year, the group added.
Rightmove said the sky-high rental costs are being driven by an ongoing mismatch in demand and supply, with tenant demand up by 6% and the number of available rental properties having fallen by 50% over the past year.
It said: “The result of this ongoing mismatch between tenant demand and the properties available to rent means that tenants looking for a new place to move to are being faced with the most competitive rental market that Rightmove has ever recorded.
‘There are more than triple the amount of tenants enquiring as there are rental properties available, meaning a high likelihood of landlords being able to choose between multiple suitable tenants.’
But it said there were some signs that conditions might be easing, with a 5% increase in the number of rental properties coming on to the market last month when compared with January, and a 16% rise between February and March.
Tim Bannister, Rightmove’s director of property data, said there were several factors behind the market challenges.
He said: ‘On the supply side, we’re hearing from agents and landlords that tenants are signing longer leases, which has prevented some of the stock that would normally come back on to the market from doing so.
‘When it comes to demand, we’re still seeing the effects of the pandemic, whereby tenants are balancing what they need from a home and how close they need to live to work with where they can afford.’
The figures show that Wales saw the biggest annual rise in rental prices aside from London – up 13.9% to £882 per month – followed by the North West with a 12.8% increase to £937 per month.
Swansea, Manchester, and Margate were among the rental hotspots identified, seeing rises of 19.7%, 19.3%, and 18.8% respectively.
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