Britain’s embattled renters are no strangers to daunting statistics, but the latest data from Rightmove PLC (LSE:RMV) will do little to assuage their anxieties.
Average advertised rents outside of London hit a new all-time high of £1,314 per calendar month in the second quarter of 2024, according to the online property platform, indicating a 7% jump from the previous year.
In London, rents hit a new record of £2,661, 4% above the same period in 2023.
While these figures show that rent inflation has come down steadily from the 16% peak witnessed in 2022, supply remains considerably bottlenecked.
Properties received an average of 17 enquiries from would-be tenants in the quarter, which is down from 26 in 2023 but double the amount in 2019.
The amount of rental properties has improved 14% year on year but still remains 20% lower than pre-Covid levels.
According to Rightmove, around 120,000 more rental properties are needed to bring rental price growth back to pre-pandemic levels.
Labour’s pledge to build 1.5 million new homes within five years could improve the availability of rental properties for tenants, though Rightmove has called for greater support from the government for landlords to encourage investment in the private rented sector.
Rightmove’s director of property science 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.”
The North East witnessed the highest year-on-year rent inflation in the second quarter at 10.3%, followed by the West Midlands at 9.3% and Scotland at 7.9%.