Anybody currently looking for a new home to rent will have first-hand experience of how busy the market is right now.
The number of enquiries each property is receiving from would-be tenants is now 17, according to Rightmove.
Whilst down from 26 in 2023, the existing level is more than double the eight at this time in 2019, and is pushing up rental values as a result.
Average advertised rents outside of London rise to a new quarterly record of £1,314 per calendar month (pcm), now 7% higher than last year (£1,231 pcm)
London rents have also risen to a new record of £2,661, now 4% higher than last year (£2,567 pcm), with rent growth steadily slowing since the peak of 16% in 2022
Despite overall rental supply slowly improving from last year (+14%), the number of rental properties available is still 20% below pre-pandemic levels
Tenant demand is down 16% compared to last year, however, 22% more tenants are looking to move than in 2019
There have been some early positive signs from the new government regarding improvements in the rental market for tenants, however, Rightmove suggests more support is needed for landlords to invest in good quality homes for the private rented sector
| National average asking rent for all property types (excluding Greater London) | |||
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
| Q2 2024 | £1,314 | +1.8% | +6.8% |
| Q1 2024 | £1,291 | +0.8% | +8.5% |
| Greater London average asking rent for all property types | |||
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
| Q2 2024 | £2,661 | +1.1% | +3.7% |
| Q1 2024 | £2,633 | +0.1% | +5.3% |
| Inner and Outer London | |||
| Avg. asking rent per month | Quarterly change | Annual change | |
| Inner London | £3,132 | +0.8% | +2.4% |
| Outer London | £2,318 | +1.4% | +5.1% |
A recent Rightmove study showed that around 120,000 more rental properties are needed to bring rental price growth back towards more normal pre-pandemic levels of around 2-3%, based on current demand.
There have been some early positive signs from the new government regarding improvements in the rental market for tenants.
Labour has pledged to get 1.5 million more homes built, which could improve the availability of rental properties for tenants if some go to the private rented sector, or more tenants can become first-time buyers.
Rightmove is calling for further support from the government for landlords to encourage investment in the private rented sector, particularly any help with making properties more energy efficient. A balanced approach to the rental market that acknowledges the importance of landlord investment will ultimately benefit tenants, providing them with a broader choice of higher-quality homes.
Rightmove’s Tim Bannister said: “With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants. We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market.
“There is an opportunity to encourage landlords to continue to invest in good quality homes, for example through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in government towards working alongside and with landlords.
“Landlords have previously told us that the government’s perception of landlords is one of their main concerns about the sector. Support for both tenants and landlords will be key to achieving long-term stability in the rental market.”
