Are you considering moving outside of London to find cheaper rent? Unfortunately, you might be in for a shock. A recent study by Rightmove has revealed that average monthly rent outside of the capital has reached a record-breaking high of £1,316. This marks a 7% increase from the previous year, highlighting a growing rental crisis.
Across Britain, excluding London, the average advertised rent is now 7% higher than a year ago. Rightmove’s analysis for May shows that the situation is particularly dire in London, where the average advertised rent stands at £2,652 per month, a 4% increase from the previous year.
While the pace of growth in rental prices has slowed from its peak of 12% two years ago, rents remain significantly higher than pre-pandemic levels, when the average annual increase was around 2%. This is a harsh reality for those searching for a new home or already living in a rented property.
Despite the challenging situation, Rightmove reports some positive signs in London’s property market, with improvements in supply and demand contributing to a slowdown in rental price growth. However, the same cannot be said for Scotland, where average advertised rents have risen by 8% to £1,067.
Tim Bannister, a property expert at Rightmove, emphasizes the long-standing imbalance between supply and demand in the rental market. He reminds us that rental price growth was once more stable, before the pandemic disrupted the housing sector.
The Rightmove findings arrive just days before the General Election, scheduled for Thursday, July 4. Property experts are urging the next government to address the housing shortage and stabilize rents. Tim Bannister calls for prioritizing improvements to the planning process, accelerating house building, and encouraging increased supply in the rental market.
Nathan Emerson, CEO of Propertymark, a body representing property professionals, echoes this sentiment, highlighting the need for more homes in the private rental sector to stabilize rental prices. He advocates for tax system reforms to encourage more investment in the sector, ultimately leading to lower rents for tenants in the long term.
The escalating rental crisis is a pressing issue facing the UK, demanding immediate action from the government to address the housing shortage and provide much-needed relief to renters.
