Rent rises slow dramatically as many properties slash asking prices

The rental market in Great Britain is experiencing slower rent increases and regional variations. Average rents outside London rose by 0.6% to £1,349 per month, the smallest rise since 2020, while London’s rents rose by 0.1% to £2,698. Despite record rents, supply has grown, with 11% more properties entering the market compared to last year. Demand has eased, with tenant inquiries dropping 7% year-over-year, leading to a quarter of rental properties lowering their advertised prices—the most since 2018.

Factors contributing to changes include increased buy-to-let lending (32% higher than last year), and more renters transitioning to first-time buyers, encouraged by improved mortgage rates and the pre-stamp duty tax rise rush. Long-term supply-demand imbalances persist, with tenant inquiries 10% higher than pre-pandemic 2019 and available properties 33% lower.

The Renters’ Rights Bill is not yet impacting the market significantly but could pose challenges, such as banning rent in advance. Regional dynamics show London’s balanced supply and demand compared to higher tenant inquiries in the North West. Affordability remains strained as rent increases outpace wage growth, with wages up 31% since 2020 and rents up 40%. Experts suggest an ongoing focus on reliable long-term tenants in the market.