The rental market in London and Britain overall is experiencing record-high rents and a shortage of available properties, making it difficult for tenants to find affordable housing.
According to property website Rightmove, average monthly rents outside of London have reached a new record high of £1,278, a 10% increase compared to a year ago. In London, average rents have also risen to a record of £2,627 per month, a 12% increase from the previous year. These rent increases far outpace the overall inflation rate and wage growth.
Rightmove’s rental trends tracker reveals that each advertised rental property is receiving an average of 25 enquiries, more than triple the number of enquiries in 2019. This indicates a significant increase in demand for rental properties, while the supply remains limited. The number of tenants in the market has grown by 41% compared to pre-pandemic times, while available properties have dropped by 35%.
The mismatch between supply and demand is a major factor contributing to the rising rents and difficulties faced by tenants in finding suitable housing. Half of renters are at risk of losing their homes if they miss just one paycheck, highlighting the vulnerability of many renters in the current market.
While there have been some improvements, such as a 7% increase in rental properties coming to the market compared to last year, the demand still exceeds the available supply. Rightmove’s director of property science, Tim Bannister, acknowledges that it will continue to be challenging for tenants to navigate the market. However, if the trend of improving supply and demand continues, there may be a slowdown in the pace of yearly rent rises.
The housing crisis in Britain, characterized by a lack of supply and affordability, has led to more people living in rented accommodation than any other type of home occupancy. Rightmove, as a platform for selling and renting properties, collects data on rental property enquiries and queues for viewings as part of their rental trends tracker.
In conclusion, the current rental market in London and Britain overall is characterized by record-high rents, a shortage of available properties, and a high demand from prospective tenants. This situation poses challenges for tenants in finding affordable housing and highlights the need for addressing the housing crisis in the country.