Average asking rents have rocketed at their fastest ever rate to £1,068 per month outside London – 9.9% higher than this time last year.

Rightmove’s Quarterly Rental Trends Tracker reveals that this rapid growth, driven by high tenant demand and low numbers of available rental properties, means that rising rents are outpacing house price increases in all but three regions: East Midlands, South West and the South East.

Wales (+12.7%), the North West (+12.5%) and the South West (+11%) lead the way in annual asking rent growth, while London hit record annual growth of 10.9%, with asking rents in the capital now 3% higher than before the pandemic started – the first time they have risen beyond pre-pandemic levels.

Largest increase

Pontypool in Monmouthshire saw the largest annual increase in asking rent of any local area, jumping 20% from £562 to £674, followed by Ascot (+18%), and Littlehampton (+17%).

Rightmove predicts that asking rents will rise by 5% in 2022 as the imbalance between supply and demand continues. It also reveals the average rental yield in Great Britain is at its highest point since 2016, at 5.5%, with record yields seen in the North East and Wales.

Total rental demand is up by 32% compared to this time last year, while the number of available rental properties is 51% lower. This has led to available rental properties being snapped up by tenants in an average of 17 days.

Tenant demand

bannister rightmove

Rightmove’s director of property data, Tim Bannister (pictured), says: “Tenant demand continues to be really high entering the new year, meaning the imbalance between supply and demand is set to continue until more choice comes onto the market for tenants, which has led to our prediction of a further 5% increase in average asking rents in 2022.

“Landlords understand the importance of having a good, long-term tenant, and there is a limit to what renters can afford to pay, which will prevent rents rising at the same rate we’ve seen over the past year.”

Read the report in full.

3 COMMENTS

  1. The ONLY benefit in being a PRS Landlord now is the number of other Landlords leaving the sector and those properties being lost from PRS altogether.

    Rent rises will be going up far more than the 10% Ive increased for each of the last 3 years.

    I can see 15% rises coming too.

    Gov needs to listen more to professional Landlords and less to the likes of Shelter etc.

    The great thing for Landlords is even if annual rises ever come down to 5% it will be based off the huge increases we’re now seeing.

    EPC changes will see a futher huge rent increase soon too.

  2. Unfortunately there are still too many letting properties available.

    We need a lot more LL selling off to produce massive unmet demand..
    Those LL remaining can then substantially increase their rents to realistic levels.

    LL with reduced supply will be able to justifiably hike their rents.
    Most LL will be able to source tenants prepared to pay the rent demanded.
    If they don’t they will be homeless.

    Tenants are going to have to manage their lifestyle expenses in a far more rigorous way.

    This as they will need the discretionary spend to pay for increased rents.

    It is most gratifying that the PRS is shrinking.

    It will reach a point with millions of homeless that Govt eventually realises that the war on LL will come back to severely bite them politically.

    Govt will belatedly realise that they NEED private LL whether they like it or not.

    LL private capital massively contributes to providing housing for those who can’t or WON’T buy their own home.

    Govt will then need to reverse their anti-LL policies.

    I’m just glad I’m getting out of the game ASAP!

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