Anybody currently looking for a new home to rent will have first-hand experience of how busy the market is right now.
The number of enquiries each property is receiving from would-be tenants is now 17, according to Rightmove.
Whilst down from 26 in 2023, the existing level is more than double the eight at this time in 2019, and is pushing up rental values as a result.
Average advertised rents outside of London rise to a new quarterly record of £1,314 per calendar month (pcm), now 7% higher than last year (£1,231 pcm)
London rents have also risen to a new record of £2,661, now 4% higher than last year (£2,567 pcm), with rent growth steadily slowing since the peak of 16% in 2022
Despite overall rental supply slowly improving from last year (+14%), the number of rental properties available is still 20% below pre-pandemic levels
Tenant demand is down 16% compared to last year, however, 22% more tenants are looking to move than in 2019
There have been some early positive signs from the new government regarding improvements in the rental market for tenants, however, Rightmove suggests more support is needed for landlords to invest in good quality homes for the private rented sector
| National average asking rent for all property types (excluding Greater London) | |||
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
| Q2 2024 | £1,314 | +1.8% | +6.8% |
| Q1 2024 | £1,291 | +0.8% | +8.5% |
| Greater London average asking rent for all property types | |||
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
| Q2 2024 | £2,661 | +1.1% | +3.7% |
| Q1 2024 | £2,633 | +0.1% | +5.3% |
| Inner and Outer London | |||
| Avg. asking rent per month | Quarterly change | Annual change | |
| Inner London | £3,132 | +0.8% | +2.4% |
| Outer London | £2,318 | +1.4% | +5.1% |
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.
There have been some early positive signs from the new government regarding improvements in the rental market for tenants.
Labour 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.
Rightmove is calling for further support from the government for landlords to encourage investment in the private rented sector, particularly any help with making properties more energy efficient. A balanced approach to the rental market that acknowledges the importance of landlord investment will ultimately benefit tenants, providing them with a broader choice of higher-quality homes.
Rightmove’s Tim Bannister said: “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.”
Who could have foreseen this? The law of unintended consequences strikes again!
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It’s time to follow Scotlands model, strange in Ireland immigrants have been pitching tents outside Parliament and are housed in a hotel the next day, in London you can pitch your tent in Park Lane and stay.
Top tip a house owning guarantor every time.
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There is more to it than this, the number of BTL landlords is declining but the total number of private rental properties is essentially unchanged at all time high levels and the sector is multiples larger, even on a per head basis vs 2000.
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I can’t believe it’s only 17 per property – my (obviously limited) experience is it’s far higher. You guys would have a broader knowledge – what do you think?
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So, agents now have to qualify 17 applicants for each available property and if they are doing this properly, they should be spending at least 10 minutes building a rapport with the applicant and understanding the needs and wants of the applicants and assessing their ability to pay the rent etc. Applicants, are frustrated because by the time they call the agent, having received their Rightmove alert, the property is already under offer. So, knowing how competitive the market is they try to make themselves look as good a possible, which in some cases means slightly inflating their income or perhaps giving themselves a small promotion at work, then when the references come back, they fail. Despite a busy market, two important KPI’s are causing concern – fraud is up YOY by over 20% (although the stats dont say exactly what this is – I suspect fraudulent references and rent arrears) and fall through’s have increased hugely, (probably due to the fraud increase!) Landlords are frustrated because they have to pay for additional referencing and the property has to be placed back on the market, or they have to accept a guarantor. If only there were a tenant lifecycle app that allowed applicants to become Rent Ready with a fully verified reference BEFORE going to a viewing! tlyfe has been working really well for us and we are saving huge amounts of time, allowing us to talk to landlords about how the Renters Rights Bill will really impact them.
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17… that must be a pretty standard/average property. We had 45 in the first day the other day (having only put it on market at 3pm that day) on one because it was nice, quality property in a great area!
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If Labour introduce the EPC of C I believe we will see an epidemic of evictions. How much more can a landlord afford? Landlords have already spent thousands and only realised an EPC of E. In fact, Labour are only building houses for sale with just a few at so called affordable rent. As local authorities now give priority in housing to those with mental health problems no one wants to buy next door to a so called affordable rental property. A Housing Assoc in my area built 8 beautiful houses around 10 years ago within 12 months they all looked like a dumping ground for a waste disposal company. None of the tenants looked after the gardens front and back preferring to use them for a collection of old sheds, metal, etc. Some windows are boarded up and these lovely houses are now a disgrace. The Housing Assoc. doesn’t seem to care.
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