Renters face record price highs as PRS remains ‘difficult’

Renters face record price highs as PRS remains ‘difficult’

0:04 AM, 23rd July 2024, About 5 months ago

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Average advertised rents outside London have surged to a fresh quarterly peak of £1,314 per month, marking a 7% increase year-on-year, Rightmove says.

The platform warns that while this growth is slower than the 2022 peak of 12%, renters continue to face significant financial pressures.

London rents have also climbed to a record £2,661 per month, up 4% annually from £2,567.

However, the rate of increase has eased from the 2022 high of 16%.

Market remains difficult for tenants

Rightmove’s director of property science, Tim Bannister, said: “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.

“There is an opportunity to encourage landlords to continue to invest in good quality homes, for example, through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in government towards working alongside and with landlords.”

He adds: “Landlords have previously told us that the government’s perception of landlords is one of their main concerns about the sector.

“Support for both tenants and landlords will be key to achieving long-term stability in the rental market.”

Market remains notably tighter than pre-pandemic

Despite a slight improvement in rental supply over the past year, the market remains notably tighter than pre-pandemic levels.

The number of enquiries per property has dropped from 26 in 2023 to 17, but this is still double the 2019 figure of eight.

While tenant demand has eased by 16% compared to last year, it’s up 22% from 2019.

Rightmove estimates a shortfall of 120,000 rental properties to restore pre-pandemic rental growth levels of 2-3%.


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