Affordability-constrained tenants may find some relief in the slowing pace of rent growth, but prices remain at record highs.
According to Rightmove data, the average advertised rent for new properties entering the market has reached a new record for the 17th consecutive time.
Outside of London, the average monthly rental price is now £1,291, which means buy-to-let investments could see increased yields.
In London, there is a noticeable deceleration in rental price growth. However, rents are still increasing, albeit by only two pounds this month, reaching a new high of £2,633 per month.
This indicates that average rents in the capital are now 5.3% higher than last year, with the growth rate steadily declining since the peak of 16.1% in Q3 2022.
While average rents continue to rise, there’s evidence of increased strain on tenant affordability, with rental price reductions reaching a five-year high for this period.
Currently, 22% of rental properties are experiencing price reductions, up from 16% last year, marking the highest level since 2019. This suggests that more landlords are adjusting rents to match local affordability.
The largest homes, categorised as top-of-the-ladder properties, such as four-bedroom detached houses and those with five bedrooms or more, are most likely to undergo price reductions. Presently, 30% of these properties have reduced prices, setting a new record dating back to 2012.
Find Out More: Check out our guides on buying new builds in Liverpool or new builds in Manchester for more property investment insights.
