Rental Market Sees Record Rents Amid Price Cuts in October 2024

In the third quarter of 2024, the rental market in Britain has seen significant changes, with asking rents outside London reaching an average of £1,344 per month, marking a 5.2% annual increase. London properties have also hit a record average rent of £2,694, which is 2.5% higher than the previous year. Despite a slight increase in the number of rental properties available, tenant competition has eased, with the average number of inquiries per property dropping from 23 to 15 compared to last year. However, this figure is still nearly double the eight inquiries recorded in 2019. The supply of rental homes has increased annually but remains below 2019 levels, indicating ongoing challenges in the market. Notably, over 21% of rental properties are experiencing price reductions before securing tenants, an increase from 16% last year. This trend suggests that landlords are adjusting their expectations in response to market conditions. Additionally, there are indications that some landlords are exiting the rental market, with 18% of homes for sale having previously been available for rent, a significant rise from 8% in 2010. Tim Bannister, Rightmove's director of property science, highlighted that while there are signs of improvement in the imbalance between demand and supply, affordability continues to be a major concern for renters. The market remains competitive, but the adjustments in asking rents and the increase in available properties reflect a shifting landscape in the rental sector. Overall, the rental market in Britain is navigating a complex environment characterized by record-high rents, reduced tenant competition, and a notable increase in properties undergoing price reductions, all of which are reshaping the dynamics of renting in the country.