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Asking rents reach new record highs as supply remains squeezed, says Rightmove

The average rent being asked outside London has reached a new record high of £1,190 per month, according to a property website.

Rightmove, which released the figures, said asking rents across Britain outside of London have been rising every quarter since the end of 2019.

Within London, average asking rents have surpassed £2,500 for the first time to reach a new record of £2,501 per month in the first quarter of 2023, Rightmove said.

However, the pace of the increases generally across Britain has been slowing, it said.

Supply remains very constrained in the rental market, with a significant imbalance between renters looking for properties and the availability of homes to rent, however there are some slow signs of improvement this year, Rightmove added.

Rightmove rental map
Rightmove’s map shows average asking rents (Rightmove/PA)

It said there is a particular gap between supply and demand in the terraced houses sector.

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Rightmove’s director of property science Tim Bannister said: “We have seen some early signs of improvement on squeezed supply levels this year, though with no significant influx of new properties becoming available to rent currently on the horizon, the mismatch is set to continue for some time.

“Many agents are having to manage a very high volume of tenant inquiries for every property that they let in the current market.

“Properties in popular areas within an affordable asking rent range of that local area are likely to be snapped up almost immediately, and on average homes are finding a tenant much more quickly than this time in 2019.

“Although there are some early signs that the gap between supply and demand is starting to narrow a little, it will still feel very competitive for tenants trying to secure a home.”

Craig Webster, managing director of Tiger Sales & Lettings in Blackpool, Lancashire, said: “The rental market remains very busy, with multiple applicants competing over a shortage of property to rent.

“We’re seeing more tenants staying put in their current home, which is having a knock-on effect for the rest of the market and contributing to the shortage.

“We are also seeing some of our landlords decide to sell up for a variety of reasons – more legislation to navigate, higher mortgage costs, or because they can now get a good price for their home.

“However, for new or existing landlords looking to grow their portfolio, yields remain very strong, with a mix of property types, both houses and flats, proving popular.”