Average asking rent outside London 'falls for first time since pandemic began'

Houses
-Credit:Rui Vieira/PA Wire


For the first time since before the Covid-19 pandemic, the average asking price for a rental property outside London has seen a decrease, according to Rightmove.

The average advertised rent in Britain, excluding London, fell by 0.2% to £1,341 per calendar month in the fourth quarter of 2024 compared to the previous quarter. This is the first quarterly drop recorded since 2019.

Although it represents a mere £3 decrease in newly advertised monthly rents, it signifies an end to several months of record-breaking prices, says Rightmove. Despite being 4.7% higher than the previous year, this is the slowest rate of growth since 2021.

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Average advertised rents in London continued their upward trend, hitting a 13th consecutive quarterly record of £2,695 per calendar month. However, Rightmove noted that the quarterly increase in London's monthly asking rents was relatively small, at just 0.1% or £1. Average rents in London were 2.4% higher than a year ago – the lowest increase since 2021.

The website also highlighted that a rising supply of rental homes was improving the balance of supply and demand, although there were still typically 10 applications per rental property. Looking across Britain, rental supply had increased the most in the north-east of England, and least in Wales, according to Rightmove.

The website suggested that some rental sector demand may have shifted to the house sales market, aided by some mortgage rate reductions and rising wages. Rightmove has indicated that some tenants are opting to remain in their current homes rather than face the expenses of moving.

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A first quarterly drop in rents is the culmination of several months of improvement in the balance between supply and demand.

“While new tenants are still paying more than they were at this time last year, the pace of growth continues to slow. However, though this is the big picture of market activity, agents on the ground still tell us that the market is very hot, and some areas have improved more than others when it comes to the supply and demand balance.

“Our own data shows that the average rental property is still receiving 10 applications per property, which is lower than the peak, but still double the pre-pandemic norm.”

John Baybut, managing director at Berkeley Shaw Real Estate in Liverpool, said: “Demand is generally still pretty strong and the market is still busier than before the pandemic. Tenants are paying very high rents, so with more supply on the market now, some are being more ‘choosy’.

“Some have also decided the costs of moving are too expensive and have decided to stay put. Landlords have to be careful to price accurately right now, despite having their own affordability pressures with high mortgage rates. Landlords need to work closely with experts to set the right price and keep their home occupied in the current market, reducing the risk of void periods.”