Rightmove has released the latest figures on what the rental market looks like in 2024, as each property is receiving an average of 17 enquiries from would-be tenants.
This means that for each property up for let, 17 renters enquire – making it an extremely competitive market.
And it’s not cheap either. Rightmove figures show the average advertised rent of new properties coming onto the market has hit a new quarterly record, with the average price outside of London now £1,314 per calendar month (PCM). Meanwhile, rentals in the capital are now 4% higher than last year at a new record high of £2,661 per calendar month.
Supply and demand continues to be a factor in the rising cost of rentals, as 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.
Rightmove’s Director of Property Science Tim Bannister says:
“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.”
However, the new Labour government 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.
Lucy Beasley, Lettings Manager at Jones Robinson in Newbury said:
“Recently, we have observed an increase in available properties coming to market, but we haven’t noticed much of a reduction in demand from tenants which remains robust.
“Rents are still high for many, and we have noticed that larger properties sometimes need to reduce their prices to secure tenants. While rents are showing a slight decrease this year, they are still above where they were two years ago, with many tenants facing an affordability blocker when looking for homes to rent.”
Despite the slow improvement in the overall rental supply from last year (+14%), the number of rental properties available is still 20% below pre-pandemic levels.
Further reading
Purchases – Oakwood Property Solicitors
WHAT TO DO NEXT
To make a start on the next step in your property journey, get in touch today to book a consultation with a member of our team. Call us on 0113 218 5727 to find out how we can help you.
