Asking rents in the UK rental market have hit a new all-time record this quarter according to Rightmove’s quarterly Rental Trends Tracker, with the average price per calendar month now reaching £1,162, increasing by +3.2% this quarter – only the third time on record that rents have increased by 3% in a quarter – and by 11% annually.
Rental prices for tenants outside of London have risen to a new all-time record of £1,162 per calendar month according to Rightmove’s quarterly Rental Trends Tracker (rental yields), with an increase of 3.2% in the last three months, and this being only the third time since records began that rents have increased by 3% or more in one quarter. With such a severe undersupply of stock, demand currently at 20% higher than the previous year, and the number of available properties to rent down by 9%, the widening gap between supply and demand continues to create competition amongst tenants looking for a home and is underpinning the surge in rental prices across the country.
“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. Whilst it's positive news that most areas are seeing more properties coming to market, with London the notable exception, ultimately the gap between supply and demand is becoming wider across the board.” Tim Bannister, Rightmove’s Director of Property Science.‘‘
Amidst the rise in demand for properties in the UK, competition between tenants for available studio apartments in the market is now 71% higher than it was last year, with a staggering four times as many tenants looking for a studio apartment, than there are studio apartments available in the market. Studio apartments have also now overtaken one-bedroom apartments as the most in-demand property type for renters, as more and more renters look to live in the heart of the cities to minimise the distance from their studies, workplaces, available amenities, and events with their friends.
To learn more about what properties are most popular amongst renters and to capitalise on the surging demand for studio apartments in the UK, get in touch with one of our expert property consultants today.