According to Rightmove, average private rents across Great Britain have reached new highs, with some hotspots seeing yearly rises above 25%.
Outside London, the typical advertised rent for newly listed homes rose to £1,385 per calendar month in the third quarter. In London, the average reached £2,736. This marks the third quarterly record for asking rents, and Rightmove says affordability for would-be tenants remains very stretched.
Average earnings are about 5% higher than a year ago, yet rent now takes 44% of the average wage, up from 40% five years ago. Landlords are facing their own pressures. Rightmove points to last autumn’s stamp duty rise, speculation about further tax changes in next month’s Budget, and uncertainty around the Government’s Renters’ Rights Bill as factors encouraging some buy-to-let owners to sell and discouraging new investment. The bill has passed Parliament and now awaits royal assent.
Rents have climbed as demand continues to outstrip supply, pandemic-era changes reshaped how people live and work, and landlords passed on higher borrowing costs or exited the market. Citizens Advice says its analysis shows private renters, alongside single parents, are likely to struggle with the cost of living, with some paying more than half of their take-home pay in rent.
Rental supply has improved: the number of available homes is 9% higher than a year ago, yet still 23% below 2019. New listings have slowed and sit 1% above last year. Regional trends vary.
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