Rents throughout the UK have fallen barely for the primary time in additional than 5 years—though tenants in London are nonetheless seeing new highs, based on recent information from Rightmove.
Exterior the capital, marketed rental costs dipped by 0.2% to a median of £1,341 per thirty days, the primary such decline since late 2019.
Though the month-to-month distinction equates to simply £3, Rightmove describes it as a “key milestone,” reflecting a slowly enhancing stability between provide and demand within the rental market. Rents are nonetheless 4.7% increased than a 12 months in the past, however that’s effectively under the inflation peak of 12% in 2022.
Colleen Babcock, Rightmove’s head of commerce advertising, attributes the easing to extra rental properties getting into the market—up 13% on final 12 months—whereas the variety of potential tenants has fallen by 16%. The northeast of England has led the way in which in provide progress. Babcock believes some former renters have transitioned into dwelling possession, because of stabilising mortgage charges and slower home value progress.
Nonetheless, demand for rental houses stays at double the pre-pandemic norm, with every property attracting round ten candidates on common. This persistent imbalance has pushed rents 64% increased exterior London because the first lockdown in March 2020. Throughout the identical interval, London rents have risen by 28%.
In distinction to the modest decline elsewhere, common rents within the capital have climbed to a report £2,695 per thirty days, marking new highs in each quarter since late 2021. That mentioned, London’s annual improve of two.4% is the bottom in virtually 4 years.
“We’re seeing a cooling of what has been a ferociously hot rental market,” mentioned Alex Bloxham, head of residential lettings at Bidwells, who notes that any continued enchancment in provide ought to put downward stress on rents.
In the meantime, Labour’s proposed Renters’ Rights Invoice, which goals to boost tenant safety and rights, could possibly be launched later this 12 months. Some landlords have voiced issues about these reforms, however Rightmove says it has not noticed any instant affect on present market situations.
