Average asking rents in London have hit record highs of £2,567 per month, new data shows, with tenants in the capital now paying a third more than they were pre-pandemic.
Renters in the capital are forking out £559 more every month compared to the same period in 2019, a new study by Rightmove shows, as demand and cost pressures on landlords drive up prices.
In recent months landlords have increased the costs of rent due to rising mortgage rates set off by the central bank’s 13-straight interest rate hikes.
Whatsmore a shrinking supply of homes in the capital means that many tenants offer over the asking price on rent in order to secure a home.
Outside of London, the average asking rental price for new tenants rose by just £71 in the four years previous between 2015 and 2019, which Rightmove said highlighted the “rapid increase in new asking rents as tenant demand has increased”.
Across the UK, the current average time for a landlord to find a tenant for a home to rent is 17 days, the shortest it has been since November 2022.
“The themes dominating the lettings market continue to be low supply and high demand – an expansion in the number of people looking to rent, rather than landlords selling up en mass,” Allison Thompson, national lettings managing director of Leaders Romans Group said.
“Some highly leveraged landlords are considering selling due to interest rate rises but we find most are mortgage-free, and in most cases our advice is to avoid a knee-jerk reaction.
“Interest rate rises are likely to reverse in early 2024 and in the meantime the almost total absence of voids helps counter increased mortgage costs.”