New properties coming onto the market from outside of London have risen in price by an average of 1.2% this quarter, Rightmove’s latest market snapshot says they have reached a new record of £1,365 per calendar month (pcm).
Eventhough the average price has once again risen, the annual growth figure is actually the lowest it has ever been since 2020, according to Letting Agent Today.
Comparisons to costs in London
Whilst properties outside of London are up by over 1% this quarter, new properties inside London are said to have increased by only 0.5% this quarter to £2,712 pcm.
Despite this, Letting Agent Today says this rise is still a “15th consecutive record for rents in the capital.”
Since the pandemic
Rightmove data shows that five years onward from the beginning of the pandemic, the average monthly rent that a new tenant will pay is £417 more than it was in 2020. This shows an uplift of 44%.
Over the same period of time, average earnings have risen by 36%. Therefore, rental prices have outpaced the average earnings salary.
However, whilst the percentage of growth looks high, the majority of it occurred during the panic year of the pandemic (in 2021 and 2022.)
Letting Agent Today says, “Since 2023, yearly rent rises have been gradually slowing.”
Reasons for the slowing pace of rent growth
Supply and demand is beginning to improve and as a result rent prices are becoming steadier.
As the market begins to stabilise for the first time since the pandemic, Letting Agent Today says, “We’re currently seeing the best balance between supply and demand in the rental market since 2020.”
Property availability
Rightmove shows that there are 15% more properties available now than there were last year, with the biggest increase being seen in the Northeast at 33%.
However, the statistics show that overall availability is still 29% below 2019’s level.
The snapshot also confirms that tenant demand has eased by 10% in comparison to the previous year.
With more properties available and tenant demand calming down, the average number of enquiries has decreased since last year, going from 16 to 11. However, this is still up from 7 in 2019.
