While the pace of rental growth has moderated, properties are still being let out at a rapid pace, according to Nicky Stevenson, managing director of Fine & Country, who notes that the market remains highly competitive, driven by the continued supply demand imbalance. 

“With peak rental season underway, homes for rent continue to be in high demand, which in turn has reduced the amount of time that rental properties are sitting empty,” she said. 

“The median time on the market from listing to finding a renter is just 12 days, meaning that over half of all homes are being rented in less than two weeks. This trend is consistent across all regions across the UK, with some properties renting even faster.” 

Stevenson notes that, according to Dataloft Rental Market Analytics, one-bedroom flats are currently the quickest to rent, averaging just ten days on the market, with 43% let in under a week. This pace could potentially increase over the next few weeks, she believes. In July and August last year, properties took just ten days, on average, to rent, Stevenson says.

Although rental price growth is more subdued, it is still moving on an upward trajectory. The average rent in July 2024 rose to £1,308, a 0.7% monthly increase, higher than the 0.2% rise seen in June. 

Stevenson said: “Data from HomeLet reveals that the annual growth rate stands at 5.2%, just under half the rate observed a year ago. Outside of London, rents increased more significantly, rising 7.3% compared to July 2023.”

She noted that each rental property is currently attracting more potential renters as the demand/supply imbalance continues. According to Rightmove data, letting agents are now receiving 17 enquiries for every rental property, more than double the eight seen in 2019. “With strong demand for rental properties, the average void period has also decreased, dropping from 17 days in June to just 11 days in July,” Stevenson added.

Turning her attention to the prime rental market, she noted that average rents have reached £4,097, which is up 5.2% year-on-year. “Prime rental growth has been strongest in Wales and the North West, each with a year-on-year rise of 8.4%,” Stevenson highlighted.