Mapped: Average London rent hits nearly 3k as asking prices soar across UK

Asking rents have reached new record highs as a shortage of available properties continues to restrict choice for renters, according to data from a property website.

Figures from Rightmove show that average advertised rents across Britain, excluding London, surpassed £1,400 per month for the first time.

The typical asking rate outside the capital climbed to a record £1,418 per calendar month in the third quarter of this year.

Colleen Babcock, a property expert at Rightmove, said: “Average rents have reached another new record and have now surpassed £1,400 per month outside London for the first time.

“However, beneath the headline figure, rental growth has continued to settle compared with the exceptionally fast pace we saw a few years ago.

“Supply remains constrained, which is continuing to put upward pressure on rents, but demand is also more measured.

“That has helped to create a more balanced market overall, even though affordability remains a challenge for many renters.”

Although costs remain on an upward trajectory, price inflation has cooled compared with the acute competition seen during the market's recent peak.

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Annual rent growth outside London stood at 2.4 per cent in Q3, down from annual increases of around 10 per cent recorded between 2021 and 2023.

The portal noted that available rental housing stock fell by 2 per cent compared to the previous year, matching a 2 per cent drop in tenant demand.

Meanwhile, London rents hit an all-time peak of £2,825 per calendar month, reflecting a 3.2 per cent annual increase, a faster rate of growth than elsewhere in Britain.

Higher rents in London appear to be driven by a more pronounced supply squeeze, Rightmove said.

The number of available homes to rent in London is down by 9% compared with a year ago, while renter demand has increased by 6% annually.

Elevated mortgage rates continue to make property investment less attractive for prospective landlords, Rightmove said.

Matt Smith, a mortgage expert at Rightmove, said: “One of the biggest challenges for many landlords at the moment is managing the properties they already own when the time to remortgage comes around.

“New buy-to-let investment has been relatively subdued for some time, and some landlords are still reaching the end of much cheaper fixed-rate deals taken out when borrowing costs were lower.

“For those landlords, moving onto a higher mortgage rate can have a significant impact on monthly costs and rental yields.”

Kesha Foss-Smith, head of lettings at John D Wood & Co, said: “Despite tighter supply, value for money remains critical.

“Tenants are increasingly discerning, especially at the upper end of the market, making realistic pricing and high-quality presentation essential.

“Looking ahead, maintaining a healthy supply of rental homes will be key to easing competition and supporting long-term market stability.”

Richard Antrobus, director at VitalSpace, said: “The rental market in south Manchester remains highly competitive, with demand continuing to outstrip the supply of quality homes.”

Aneisha Beveridge, head of research at Hamptons, said: “Asking rents are useful for taking the temperature of the market, but they only tell part of the story.

“Increasingly, some of the largest rent rises are happening within existing tenancies as landlords seek to narrow the gap between long-standing rents and current market levels.”

She added: “In many cases, landlords are catching up rather than pushing rents materially beyond the market rate.”

Ms Beveridge said: “The fundamental issue remains a shortage of rental homes.

“While rental growth has cooled from the frenzied levels seen a few years ago, the supply of available homes remains constrained, which continues to put upward pressure on rents across much of the country.”