Average monthly rents in Great Britain hit record high
If you’ve been following the property market recently, you’ll know that prices, whether that’s homes to rent or for sale, have been rising.
And one of the main reasons for these increases is because there aren’t enough homes available to meet the demand from people looking to move.
Demand from renters is up 20% when compared to the same period in 2021, which is pushing up average monthly rent payments. The average monthly rent in Great Britain is now £1,162, up 11% in a year, and by 3.2% since July 2022. This is only the third time that rents have risen by 3% or more in a three month period.
Some good news is that in almost every region of Great Britain – the exception being London – there are more homes available to rent now than there were earlier in 2022. But this still hasn’t been enough to keep up with the number of people looking to move.
Our property expert, Tim Bannister, says that there needs to be far more homes available for rent before the current levels of demand can be met.
He says: “It’s a real challenge for renters at the moment, as there are simply not enough homes available to rent to meet the demand from people enquiring. Ultimately, the gap between supply and demand is becoming wider across the board. We’ll need a significant addition of homes to come onto the market to even begin to balance the scales.”
Where have rents increased the most?
|Average asking rent
per calendar month
|North Shields||North East||£600||£705||+17.4%|
We’ve seen lots of home-movers looking to rent homes in, or close to, cities across Great Britain. During the pandemic, many people chose to move to coastal towns and the countryside, but we’re now seeing a reversal of that trend. And cities like Manchester, Cardiff and Edinburgh are among the areas where rents have risen the most in the past three months.
John O’Malley, CEO at Pacitti Jones in Glasgow, says: “In essence younger professionals want the same things as they always wanted – to go out and have a good time – and this means being back in the heart of our cities and enjoying the social amenities available.”
And it’s not just the younger generation looking to live in vibrant city centre locations: “The dramatic rise in the cost of living means that we are now starting to see older people downsizing to apartments to reduce household bills. And this is something we expect to see more of,” says John.
How can you increase your chances of getting the rental home you want?
With the high level of competition for rental properties at the moment, the best thing you can do is to be as prepared as possible when you start looking for your next home.
Director of Benham and Reeves, Marc von Grundherr, says that as well as making sure you have your deposit ready – which is usually around 5 weeks’ rent – it’s will also really help if you’ve got all of the necessary documents to hand, from right to rent permissions, to current and past addresses, employee and personal references, and bank statements.
“And when it comes to viewings, make yourself available. The market moves incredibly fast, so waiting for an evening viewing or until the weekend could see you miss out. If a property is right for you, act as soon as possible to secure it,” says Marc.
“And finally, be ready to move. A landlord will ideally look for a tenant who is able to rent their property as soon as the current tenant vacates,” he adds.