£3,300 £4,363 +4.6%
MARKET OVERVIEW
STEADY DYNAMICS
With the Renters’ Rights Act now in effect, rental market dynamics remain steady. Rental growth is holding firm and supply levels are improving, though the ban on above-asking offers may yet influence how rents are priced going forward.
RENTS ON THE RISE
In the lead-up to the Renters’ Rights Act coming into effect, the rental market showed renewed momentum. Following a rise in March, average rents across the UK rose again in April, with annual growth now at 2.1%. Rents are higher than a year ago across every UK region¹. Looking ahead, sentiment is firming: a net balance of 29% of industry contributors expect rents to rise in the near term, up from 20% previously². Supply is gradually improving, with total available homes to rent 3% above last year and at their highest level for this time of year since 2021. Meanwhile renter demand, while easing slightly from last year’s highs, remains above pre-pandemic levels³.
BAN ON OFFERS OVER ASKING RENT
From May, the Renters’ Rights Act banned renters from offering above the advertised rent. Around one in ten UK tenancies over the past five years were agreed above asking price4 . Unable to accept higher bids, landlords will likely respond by setting higher asking rents from the outset, pricing in what the market previously revealed through bidding. The impact varies by city. London has seen roughly two in ten lets exceed asking rent over five years, peaking at four in ten during high-demand periods. Manchester followed a similar pattern, reaching three in ten at its peak. With the reform addressing a symptom of supply pressure in the rental market, not the root cause, rents are likely to adjust a little accordingly.
¹HomeLet, ² RICS , ³ Rightmove , 4 Dataloft by PriceHubble
£1,900
£2,401 +3.2%
£24
£1,650
£2,043 +4.7%
£17
£1,650
£2,070 +7.6%
£18
£2,500
£3,330 +5.6%
£28
Source: Dataloft Rental Market Analytics by PriceHubble
£2,750
£3,636 +4.3%
£26
£1,500
£1,962 0%
£18
£1,590
£2,047 +9.2%
£18
£1,640
£2,155 +17.6%
£18
£4,250
£5,805 +4.4%
£52
£2,300
£2,908 +1%
£23
£1, 363
£3, 300
£4, 363
£1, 390
£3, 300
£4, 235
£1, 324
£3, 300
£4, 544