Record high rents as landlords brace for budget impact

Love or Hate Rightmove
  • Average advertised rents outside London hit a 19th consecutive quarterly record of £1,344 per calendar month (pcm), up 5.2% from last year, although this is the slowest rate of growth since 2021
  • London rents also hit a new record at £2,694 pcm, 2.5% higher than last year (£2,627 pcm)
  • The balance between supply and demand continues to improve compared with last year, but letting agents are still very busy with high numbers of tenants looking to move:
  • The average number of enquiries per rental property is now 15, down from 23 last year, but nearly double the 8 recorded in 2019
  • Available supply has increased by 13% year-on-year, though it is still 27% below 2019 levels, highlighting continued pressure on rental availability
  • More than a fifth of rental properties are currently seeing a reduction in the advertised rental price before finding a tenant, compared with 16% last year
  • It appears some landlords are bracing for a potential Capital Gains Tax rise in the Autumn budget, as well as new EPC regulations, with a record proportion of former rental homes currently on the market for sale
  • Rightmove hopes to see measures from the government that encourage landlords to stay in the market, and help them with the transition to greener homes

National average asking rent for all property types (excluding Greater London)
Quarter Avg. asking rent per month Quarterly change Annual change
Q3 2024 £1,344 +2.3% +5.2%
Q2 2024 £1,314 +1.8% +6.8%
Greater London average asking rent for all property types
Quarter Avg. asking rent per month Quarterly change Annual change
Q3 2024 £2,694 +1.2% +2.5%
Q2 2024 £2,661 +1.1% +3.7%
Inner and Outer London
Avg. asking rent per month Quarterly change Annual change
Inner London £3,175 +1.4% +1.6%
Outer London £2,341 +1.0% +3.4%

Overview

The latest Rental Trends Tracker from the UK’s largest property portal Rightmove, reveals that the average advertised rent for new properties coming to the market has hit a new quarterly record, with the average rent outside of London now £1,344 per calendar month (pcm).

This marks a 5.2% increase from a year ago, though it is the slowest rate of growth seen since 2021.

In London, rents have also reached a new record, with an average of £2,694 pcm, reflecting a 2.5% rise compared to last year.

Both national and London price trends are in line with Rightmove’s end-of-year prediction for advertised rent growth, with advertised rents predicted to be 5% higher by the end of 2024 outside of London, and 3% higher in London.

The balance between supply and demand continues to improve compared with last year, but local letting agents are still very busy with high numbers of tenants looking to move.

The average number of tenant enquiries for each rental property available has fallen to 15, down from 23 at this time last year, but still nearly double the 8 recorded in 2019. Meanwhile the number of available rental properties is now 13% higher than last year, though still 27% below 2019.

More than a fifth (21%) of rental properties are currently seeing a reduction in the advertised rental price before finding a tenant. This compares to 16% last year and is the highest figure at this time of year since 2020.

It appears that some landlords are bracing themselves for a potential Capital Gains Tax rise in the Autumn Budget, and the challenge of complying with upcoming changes to EPC regulations confirmed by the new government, with every rental property needing a minimum EPC C rating by 2030.

A record proportion of former rental homes are currently on the market for sale, Rightmove’s real-time data shows that 18% of homes for sale were previously available to rent, compared with 8% in 2010.

Rightmove’s latest Greener Homes report reveals that 2.9 million rental properties need upgrades to meet an EPC C rating, with an estimated cost of £23.4 billion, or £8,074 per property.

Rightmove’s survey of over 14,000 home-owners and renters, along with over 1,000 landlords also found that while half (50%) of landlords are concerned that the government will introduce costly charges for not meeting EPC requirements, one in five (19%) renters think stricter energy efficiency regulations should be the top priority for the new government.

Rightmove hopes to see measures from the government, either in the Budget or near future, that would encourage landlords to stay in the market, and help them with the transition to greener homes, providing much-needed homes for tenants.

Rightmove’s Director of Property Science Tim Bannister says“While we’re seeing some signs of improvement in the market’s chronic levels of demand and supply imbalance helped by a slight increase in the number of available rental properties, affordability remains a key challenge for renters as prices continue to hit new records. Tenant competition has eased slightly from last year, but the market is still far from balanced. 

“We are seeing some landlords choosing to exit the market with potential tax changes and stricter EPC regulations as additional factors in landlords’ decision-making. With rental supply under strain, incentivizing landlords to invest in energy-efficient upgrades or offering tax relief could help maintain rental supply and, ultimately, ease affordability pressures for tenants.”

 

Agent view

Lynda Woodcock, Managing Director at Pheasant Retreats in Witney, says: “The rental market has been incredibly busy, but that’s largely due to the ongoing shortage of available properties. With so many landlords considering selling their properties ahead of new legislation, such as the proposed changes around EPC requirements and tax increases, we’re seeing fewer new instructions coming through.

“It’s becoming increasingly difficult to bring new properties to market while also managing the existing stock we have, which is already under pressure from high tenant demand. I anticipate the next few months will be challenging, as the supply issue remains a concern and many landlords weigh up whether they want to stay in the market given the upcoming changes.”

Regional trends

Landlord yields

Region  Average Landlord yield Q3 2024 Annual change in yield
Great Britain excl. London 6.4% +0.4%
East Midlands 6.4% +0.5%
East of England 6.0% +0.4%
London 5.7% +0.2%
North East 8.3% +0.5%
North West 6.9% +0.3%
Scotland 8.5% +0.6%
South East 5.9% +0.3%
South West 6.1% +0.5%
Wales 6.9% +0.3%
West Midlands 6.5% +0.4%
Yorkshire and The Humber 6.9% +0.3%

 Rental price hotspots

Area Region Average asking rent per calendar month Q3 2023 Average asking rent per calendar month Q3 2024 Annual change
Batley, West Yorkshire Yorkshire and The Humber £670 £845 26.1%
Hartlepool North East £486 £589 21.1%
Coventry, West Midlands West Midlands £900 £1,083 20.3%
Huddersfield, West Yorkshire Yorkshire and The Humber £614 £738 20.1%
Bradford, West Yorkshire Yorkshire and The Humber £634 £759 19.8%
Witney, Oxfordshire South East £1,065 £1,266 18.8%
Andover, Hampshire South East £952 £1,108 16.4%
Birkenhead, Wirral, Merseyside North West £635 £737 16.1%
Reading, Berkshire South East £1,336 £1,550 16.0%
Cheltenham, Gloucestershire South West £1,080 £1,251 15.8%

Rightmove

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

You May Also Enjoy

Breaking News

Revealed: the most lucrative shared living postcodes

New research from COHO, the HMO management platform, reveals that the shared living market in England & Wales generates an estimated monthly rental income of £1.4bn. But which postcode areas are creating the most income from shared living? How much are HMOs making in your postcode? Find out here COHO has analysed the estimated number…
Read More
Breaking News

Mortgage approvals continue to climb in June

The latest mortgage approval data from the Bank of England figures show that: – Mortgage approvals on house purchases for June sat at 64,167 up (+1.4%) from 63,288 in May. This signals two consecutive months of growth. Approvals are also up (+5.6%) when compared to the 60,761 seen in June 2024. This growth is positive,…
Read More
bank of england interest rate
Breaking News

Bank of England Money & Credit Report June 2025

Net borrowing of mortgage debt by individuals increased by £3.1 billion to £5.3 billion in June, compared to a £2.8 billion increase to £2.2 billion of net borrowing in May. Net mortgage approvals for house purchases increased by 900, to 64,200 in June. Approvals for remortgaging also increased by 200, to 41,800 in June. This…
Read More
Breaking News

Housing market’s summer surge dampened by soaring stamp duty costs

Housing market activity has surged, with buyer demand up 11 per cent and agreed sales up eight per cent year-on-year, defying typical summer slowdown National house price inflation has slowed to 1.3 per cent, driven by a 12 per cent increase in homes for sale and higher stamp duty costs for many buyers Higher stamp…
Read More
Rightmove logo
Breaking News

Rents reach another new record as tenants pay £400 more than five years ago

The average advertised rent of homes outside of London has risen to another new record this quarter of £1,365 per calendar month (pcm), but the yearly pace of rent growth continues to slow: London rents also reach a 15th consecutive new record of £2,712 pcm this quarter Five years on from the pandemic, new tenants…
Read More
Breaking News

Six UK vineyards where homebuyers avoid the 84% premium

Six affordable UK vineyards where homebuyers avoid the 84% house price premium and toast a better deal The latest research from Yopa has revealed that living close to one of the UK’s top vineyards will set homebuyers back an average of £494,739, 84% more than the current UK average house price. However, there remain a…
Read More