Average asking rents for new tenants outside of London have risen to a new record of £1,162 per calendar month, according to Rightmove. This quarter’s increase of 3.2% is only the third time on record that rents have increased by 3% or more in a quarter, as new asking rents continue to rise rapidly.
In London, average asking rents rise to a record of £2,343pcm this quarter. This puts the annual rate of asking rent growth in the capital at 16.1%, the highest yearly rate of growth of any region on record.
The pace of asking rent growth is primarily down to the severe shortage of available rental properties, combined with extremely high demand, which continues to surpass even last year’s levels in every region and country of Great Britain.
Demand is up by 20% compared with last year, while the total number of available properties to rent is down by 9%. This widening gap between supply and demand is creating ever fiercer competition between tenants looking for a home.
In London, the number of new properties becoming available to rent is down by 24% on last year.