Average asking rents for new tenants outside London have increased to another new record of £1,172 per month (pm).

This further rise means average rents for newly listed properties rose by 9.7% in 2022 compared with the previous year, which is the second largest year on record for rent growth behind only 2021. However, there are signs that the pace of rent growth is beginning to ease, as the final quarter’s rise of 0.9% compared with the previous three months is the smallest quarterly increase for two years.

In London, average asking rents accelerated in growth in the final months of the year, rising by 5.8% compared with the previous quarter, taking average asking rents for new tenants to a new record of £2,480pm. In Inner London, which includes some of the capital’s most expensive areas, average asking rents surpassed £3,000pm for the first time.

One of the biggest frustrations for both tenants and agents has been the lack of available properties. However, there are signs that this may be starting to ease compared to the record low levels of last year.

The number of available properties to rent in December was 13% higher than the same period the previous year. New properties coming up for rent were also up 5% in December compared with December 2021, while the number of tenants looking for a property to rent was 7% higher over the same period.

Competition between tenants for the properties available has dropped by 6% compared with this time last year, and by a third (33%) compared with the peak in September 2022, when the gap between supply and demand was at a record high.