Record-breaking rental prices noted, with a quarter of listed properties experiencing price reductions, according to Rightmove report
Renting Has Hit a New High, But Slow Growth Offers Relief
Hang onto your wallets, tenants! Rents have soared to new record highs across the UK, with the average home outside London fetching £1,349 a month, according to Rightmove. In London, rents have also hit a fourteen-year high of £2,698 per month.
But there's a silver lining: the rental market isn't quite as frenetic as it once was. For the first time since 2020, average rents have recorded the smallest increase at this time of year. In fact, a quarter of rental properties are seeing a reduction in the advertised price, a figure last seen in 2018.
The slowing rate of rent increases is thought to be down to more homes becoming available across the rental market. The number of new properties coming onto the market in March was 11% higher than the same period last year, and the overall number of rental homes now available is 18% ahead of last year, according to Rightmove.
Colleen Babcock, a property expert at Rightmove, said, "It's good news for tenants that on the whole, the balance between supply and demand is improving. This is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price."
Slower growth in rents may be a sign that tenants have been stretched to their limits, with rents rising more than salaries on average. Average earnings are up by 31% since 2020, versus a 40% increase in rents. So if you're a landlord stating, "I just can't find a tenant at this price!" you may have to reconsider.
However, it's essential to note that while the market is cooling, it remains more competitive for renters than it was before the pandemic. The number of tenants looking to move is still 10% higher, and the number of available properties is 33% lower than pre-pandemic levels.
Some regional variations persist. While rents in places like Chippenham, Wiltshire (+16.4% year-on-year), Stockport, Greater Manchester (+16.1%), and Coventry (+14.1%) continue to increase, others are experiencing more modest growth or even a decline.
Despite the slower rental growth, it seems there's still a strong appetite among landlords to invest in buy-to-let. The number of landlords taking out buy-to-let mortgages jumped by 39.2% in the final three months of 2024 compared to the same period in 2023, according to UK Finance. So if you're a tenant, expect the competition to stay fierce in the rental market!
[1] Rightmove data as of March 2025[2] Levelling-up and Regeneration Act 2023[3] Rightmove data as of Q1 2019[4] Renters’ Rights Bill (expected to come into effect by autumn 2025)[5] Office for National Statistics data as of Q1 2023
- The Average rent across the UK, excluding London, has reached £1,349 per month, a figure that has increased by only a small percentage compared to previous years, offering some relief to tenants.
- The rental market is not as fast-paced as it once was, with 25% of rental properties experiencing a decrease in the advertised price, a figure last seen in 2018.
- The slowdown in rental increases is believed to be due to an increase in the number of homes available for rent, with new rental properties coming onto the market in March being 11% higher than the same period in 2024.
- As personal finance expert Colleen Babcock from Rightmove stated, "the balance between supply and demand is improving,... this is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price."
- Despite the slow growth in rents, the number of tenants looking to move is still 10% higher than before the pandemic, while the number of available properties is 33% lower than pre-pandemic levels, making the rental market competitive for tenants.
- The steady demand for rental properties has not deterred landlords from investing in buy-to-let, with a 39.2% increase in the number of buy-to-let mortgages taken out in the final three months of 2024 compared to the same period in 2023, according to UK Finance.
