Sky-high rental prices recorded in August

Sky-high rental prices recorded in August - Rightmove

Rising Rents Across Britain: A Look at the Current Housing Market

The housing market in Britain is experiencing a significant shift, with average rents reaching a record high of £1,577 per month in August, according to data from Rightmove. This marks a 3% increase compared to the same month last year.

In London, the average rent stands at £2,699, a 2% annual increase, while in the South East, it is £1,828, showing a 2.4% yearly rise. Tenants in the South West can expect to pay an average of £1,461, with a 2.1% annual increase, and in the East of England, the average rent is £1,599, a 2.5% increase year-on-year. The North East sees an average rent of £918, with a 2.9% yearly rise, and in Scotland, it is £1,141, with a 2.4% annual increase. In the North West, the average rent is £1,278, marking a 9.7% increase year-on-year, indicating the fastest rise in average advertised rents.

The average rent in Wales is £1,107, with a 2.6% yearly rise, and in Yorkshire and the Humber, it is £1,051, with a 2.5% yearly rise. The West Midlands sees an average rent of £1,196, with a 2.5% annual increase.

The constrained supply of homes is a significant contributing factor to the rising rents. Rightmove has reported that while the number of available homes to rent across Britain is 8% higher than a year earlier, it is still 27% lower than in August 2019.

Despite the challenging market conditions, there is some good news for tenants. In the current market, tenants have more choice and less competition from other tenants compared to a few years ago. Cities in Northern England, such as Leeds, Manchester, and Newcastle, have seen a rise in average rents due to factors like increased demand from a growing student population, regeneration projects, limited housing supply, and economic growth attracting new residents and workers. However, this trend may offer more options for tenants seeking rental properties in these areas.

Landlords provide vital homes to tenants and have faced an increase in taxation through stamp duty changes. It is essential that it remains attractive and viable to be a landlord to ensure tenants have comfortable places to live. The government should consider measures to support landlords while addressing the underlying issues contributing to rising rents, such as increasing the supply of homes and addressing affordability concerns.