London leads asking rent annual rise for first time since 2014

 

  • -Asking rents in Greater London increased to an average of £2,000 per month in Q2 2018, making it the region with the highest annual rate for the first time since Q4 2014
  • -The rebound is fuelled by a lack of new property choice for renters in London (down 3.5% on the same quarter last year) which has led to the time to find a tenant speeding up the most in the capital
  • -Outside London asking rents rose 2.7% to £796 per month, though the annual rate fell back to 0.7%
  • -Properties are being let out fastest in the South West taking an average of 29 days, and the slowest in North East, an average of 44 days

A lack of new rental properties coming to the market in London in the second quarter of this year (down 3.5% on Q2 2017) has helped push the annual rate of London asking rents to 3.4%, the highest rate for three years and the first time since Q4 2014 that the capital has been the strongest performing region.

Nationally outside London asking rents rose 2.7% over the quarter, similar to the 2.8% rise in the same quarter last year.  The annual rate has fallen back to 0.7%, dragged down by flat annual change in the South West and a negative rate of -0.4% in the South East. New listings are up 2.4% outside London, offering some more choice to renters.

Nationally on average it takes a letting agent just over a month (36 days) from the time a rental property goes on Rightmove until it is marked let agreed, which is the same length of time as this time last year. Often properties will start being advertised before they are available to help tenants looking for a place in advance, and to help landlords minimise any void periods.

The national average masks some of the faster places to let such as Stirling, Bristol and Ashford, which all take 22 days. In London, the time it takes to find a tenant has sped up from 44 days to 40 days, with the quickest areas being Bexleyheath (23 days), Edmonton (25 days) and Blackfen (25 days).

Rightmove’s Housing Market Analyst Miles Shipside comments: “After a few years of more plentiful supply in the London market we’ve now reached a point again where competition among tenants for a great rental home can be very high in the most popular rental areas of the capital. This reduced choice could be symptomatic of fewer landlords buying and some selling up as rental returns are being diminished by more onerous tax, and little or no growth in capital appreciation, along with increased demand from tenants. Outside London there looks to be more choice for tenants, but those looking to rent in the South West and Yorkshire and the Humber should note that properties are moving faster than this time last year so they may need to move more quickly to secure a good quality home.”

 

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

You May Also Enjoy

Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More
Finance

Autumn Budget Misses Mark on Housing Reform: UK Rental Market Squeezed by Shortages and Rising Rents

The UK rental market faces mounting pressures, with a recent Rics survey revealing a critical shortage of properties and surging rent prices. Landlord instructions, a key indicator of properties available to rent, fell to a net balance of -29%, marking this the lowest level since 2021. Strong tenant demand is driving rents higher, with 33%…
Read More
Estate Agent Talk

Save a house deposit faster than ever in THESE areas!

Save a house deposit faster than ever in THESE areas! Aberdeen City in Scotland is named the best place to live if you want to save for a house deposit fast, saving in as little as a year and a half Inverclyde is second, whilst Burnley is third Average salaries and house prices in each…
Read More
Estate Agent Talk

Finding Your Dream Home: Expert Advice from Camberley’s Top Estate Agents

Finding the right estate agent is crucial when navigating the competitive housing market in Camberley. With local expertise and in-depth market knowledge, these professionals can guide you toward your ideal property, saving you time and effort. Their understanding of the area’s nuances, from property trends to community relationships, positions them as indispensable allies in your…
Read More
Breaking News

Zoopla reveals most affordable towns in Britain

With the average home valued at nearly four times average household incomes, Zoopla reveals the most affordable towns in Britain   An average property in Britain is valued at 3.8 times the average annual household income (assuming 2 full-time workers) Cumnock in Scotland, is Britain’s most affordable town to buy in 2024 with average property…
Read More
Software & Tech

The Evolving Nature of Real Estate and Strategies for Agency Success

Real estate agents are used to working with fluid market dynamics. Adapting their sales strategies and responding to new industry demands is almost second nature to most agencies today. However, while making the necessary adjustments when following housing market trends is important, it’s also important for agencies to consider new business innovations that become available…
Read More