Renters warned they face 'double misery' as rent prices hit new record high

Renters have been warned that they face 'double misery' after rents hit a new record high. Asking rents outside of London have soared to a new peak, with the average cost now standing at £1,344 per month.

Rightmove's latest data reveals that there has been a 5.2 percent rise in rent prices since last year. In London, the average advertised rent has also reached an unprecedented high of £2,694 per month, up by 2.5 percent compared to last year.

Rightmove has recorded that the average number of inquiries per rental property has decreased to 15 from 23 last year, although this is still nearly twice the figure of eight seen in 2019.

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Despite an annual increase in the supply of rental homes, availability remains below the levels recorded in 2019. The property website noted that over a fifth (21 percent) of properties have had their asking rents reduced before securing a tenant, which is a rise from one in six (16 percent) the previous year.

Additionally, there are indications that some landlords are exiting the market, with 18 percent of properties currently for sale having been previously listed for rent, a significant jump from 8 percent in 2010.

Tim Bannister, Rightmove’s director of property science, commented: "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."

He added: "Tenant competition has eased slightly from last year, but the market is still far from balanced."

Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “Given the continued exodus of landlords, renters face the double misery of fighting over the scraps and then paying a fortune for them.”

Nathan Emerson, the chief executive of Propertymark, a body for property professionals, stated: "Landlords have faced continuous financial and regulatory hurdles with many having to pass on certain costs by raising rents just to break even on their increasing expenditure."

It comes as annual house price growth also soared in August, marking six months in a row of year-on-year rises. The average UK house price increased by 2.8 percent to £293,000 in the 12 months to August, according to the Office for National Statistics (ONS).

Annual growth has risen up from 1.8 percent in the 12 months to July 2024. This marked the sixth consecutive month of annual price increases, following eight months of annual decreases.

Average house prices increased in England to £310,000 (2.3 percent annual growth) in the 12 months to August 2024. Data shows that the north west was the English region with the highest annual house price inflation, at 4.6% percent.