Recent analysis by property consultancy TwentyCi reveals that the average asking rent across the UK, based on current stock, stands at £1,829 per month. This rate surpasses other market snapshots offered by different industry sources.
The observed rate marks a notable rise in rent, increasing by £178 since the first quarter of 2023 and up by a whopping £500 from the third quarter of 2019.
A primary factor behind the rental rate hike, as noted by TwentyCi, is the “significant shortage of rental properties compared to the demand.” The consultancy’s recent market analysis further adds, “The departure of many landlords from the market due to tax and regulatory changes has resulted in a further decrease in available properties. Additionally, as interest rates rise and energy costs remain uncertain, we anticipate landlords passing on these increases to tenants through rent hikes.”
While Scotland stands as an exception, there has been a noticeable surge in the number of properties marked as ‘Let Agreed’ across all other major cities and regions in the UK.
Year-on-year, the volume of Lets Agreed has seen an uptick of 2.8%, although there’s been an 18% dip from 2019, the pre-pandemic year. This modest increase in supply can be attributed to several factors. Some sellers, unable to find buyers, have chosen the rental route. Other influences include tenants relocating and the potential return of landlords to the market, drawn by the attractive returns from increased rental rates.