Private rents in Great Britain have dropped for the first time since before the pandemic, with an increase in property supply helping to cool down the previously “ferociously hot” rental market. After years of continuous rent increases, the typical rent outside of London decreased in the last quarter of 2024 to £1,341 per month, marking the first decline since 2019.
This data from Rightmove offers some relief to tenants who have faced steep rent hikes during the cost of living crisis. The new average rent outside London is £3 lower than the previous quarter, though rents are still 4.7% higher compared to the same time last year. Rightmove called this a “key milestone,” following a period of sharp increases, with rent growth peaking at 12% in 2022.
However, rents in London continued to climb, hitting a record £2,695 per month, possibly due to more landlords selling their properties. Rent increases have been driven by the pandemic’s impact, which led to an uptick in relocations for work and lifestyle changes, resulting in more competition for available rental properties.
The trend seems to be slowing, with John Baybut of Berkeley Shaw Real Estate noting a leveling-off in tenant demand, partly due to the end of the post-pandemic surge and a shift towards the sales market. Rightmove also reported a 13% rise in available rental properties compared to last year, while the number of prospective tenants contacting letting agents dropped by 16%.
Alex Bloxham from Bidwells highlighted the cooling of the rental market, where tenants have faced high competition and continuous rent inflation. Rightmove also found that more landlords were opting to sell their properties. On average, 15% of homes for sale in 2024 had previously been available to rent, up from 13% in 2023, with London seeing the most significant shift (24% in 2024, up from 20% in 2023).
