Average rent in the UK hits a record high – and it’s now a staggering £2,257 per month inside London

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The price of dwelling rises additional (Image: Getty Photos/Bloomberg Inventive)

The total impression of the value of dwelling disaster remains to be revealing itself, as the typical lease throughout Britain hits a file excessive.

Other than London, the brand new common is £1,126 a month, in response to Rightmove.

Inside London, it’s £2,257.

That is 11.8% larger than a 12 months earlier, the property web site says – including that the typical lease is now 19% or £177 per thirty days larger than when the pandemic began.

In London there’s been a surge of 15.8% over the previous 12 months.

Rising rents proceed to be pushed by a scarcity of properties – however just lately there have been small indicators of enchancment, as June noticed the best variety of new rental listings coming to market of any month up to now this 12 months.

Nonetheless, that is nonetheless down by 26% in contrast with final 12 months’s ranges, whereas demand is up by 6% – this places fierce competitors between tenants.

Rightmove’s director of property science, Tim Bannister, mentioned: ‘The story of the rental market continues to be one in every of excessive tenant demand however not sufficient obtainable properties to satisfy that demand.

‘Final 12 months, we noticed distinctive numbers of tenants seeking to transfer and this 12 months now we have seen no let-up on this pattern.

‘Whereas inventory ranges are starting to enhance, with June seeing the best variety of new rental listings coming to market up to now this 12 months, the vast hole that has been created between provide and demand during the last two years will take time to slim.

‘Till then, this imbalance will proceed to help asking lease progress.’

Rightmove predicts that rents will rise by 5-8% by the top of the 12 months.

The opposite challenge is that older housing is falling behind in comparison with the usual of newer lodging.

Richard Davies, MD of Chestertons, says: ‘All through quarter two of this 12 months, London’s rental market has seen steady progress in tenant inquiries in addition to within the variety of tenants extending their rental agreements.

‘Those that secured a property at a reduced rental charge through the pandemic are eager to carry on to this deal so long as potential, notably within the face of rising dwelling prices.’

However with the return of workplace employees and college students, the rental market is especially robust.

Richard provides: ‘This has created a particularly aggressive marketplace for tenants the place many supply landlords over asking worth so as to safe a property.’

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