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Average rent outside London hits all-time high – see how your area compares

Average rent outside London hits all-time high – see how your area compares

Average rent outside London has hit a record high.

The new record of £1,316 across Britain excluding London means average advertised rents outside London are around 7% higher than a year ago, according to Rightmove’s analysis for the month of May.

In London, the average advertised rent is £2,652 a month, up 4% from a year ago, according to the website.

With the general election taking place on Thursday, Rightmove said the next government must accelerate housebuilding and encourage landlords to invest in more homes for tenants, “to improve the supply/demand imbalance in the rental market and stabilise annual rent growth”.

Rightmove said the pace of growth in rental prices had slowed from a peak of 12% two years ago, but remained significantly higher than the “more normal” level of around 2% a year seen before the coronavirus pandemic.

It added that an improved supply-demand balance in London had contributed to a slowdown in rental price growth. In contrast, Scotland is currently the worst hit by supply-demand imbalances, Rightmove said.

Average incomes in the UK

Here are the average advertised rents and year-on-year increase, according to Rightmove

– North East, £894, 11%

– West Midlands, £1,180, 10%

– Scotland, £1,067, 9%

– East of England, £1,597, 8%

– North West, £1,146, 8%

– Yorkshire and the Humber, £1,022, 8%

– South West, £1,425, 7%

– East Midlands, £1,150, 7%

– South East, £1,836, 6%

– London, £2,652, 4%

– Wales, £1,065, 4%

Tim Bannister, property expert at Rightmove, said: “We’ve long talked about the imbalance between supply and demand in the rental market, so it’s easy to forget that there was a period before the pandemic when rental price growth was more stable.”

He added: “The next government must prioritise improving the planning process, accelerating house building and encouraging more supply in the rental market.”

(Victoria Jones/PA Wire)

Nathan Emerson, CEO of property professionals’ body Propertymark, said: “Propertymark has long argued that the private rental sector needs more homes to stabilise rent prices, but there are a myriad of other factors that can contribute to making the market more attractive to investors and tenants.

“With a general election coming up this week, Propertymark would like to see the next government reform the tax system so that more investors can be persuaded to invest in the private rental sector and reduce rents for long-term tenants.

“While we support greater housing supply, there needs to be a sensible and thoughtful delivery programme, with green belt protection in mind wherever possible.”

Here are the areas of Britain with the biggest supply/demand imbalances, as indicated by Rightmove data:

1. Scotland

2. Northwest

3. Southwest

4. Northeast

5. West Midlands

6. Wales

7. Yorkshire and the Humber

8. East of England

9. East Midlands

10. Southeast

11. London