The average advertised rent of new properties coming onto the market outside of London has risen by 1.2% this quarter to a new record of £1,365 per calendar month (pcm) reports Rightmove. Despite another new record, the average asking rent for a home outside of London is now 3.9% higher than this time last year, the lowest this annual growth figure has been since 2020.
Now five years on from the pandemic starting, the average monthly rent that a new tenant will pay is over £400 (+£417) more than 2020. This is an uplift of 44%, outpacing the increase in average earnings over the same period, which have risen by 36%. However, much of this growth in rents occurred during the frenetic pandemic years of 2021 and 2022. Since 2023, yearly rent rises have been gradually slowing. The slowing in the pace of rent growth has been largely due to the balance between supply and demand improving. As the market continues to cool and recalibrate after the pandemic years, it’s showing the best balance between supply and demand in the rental market since 2020.
