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Private rents in Britain hit record highs

Average private rents in Britain have soared to record highs, with severe shortages of properties resulting in more tenants paying above the asking price and stretched budgets, forcing more people to downsize to studio flats, data shows.

The average advertised rent in Greater London is 16.1% higher than a year ago, which is the highest growth rate of any region on record, according to the property website Rightmove.

However, the site also revealed that some cities and towns had faced even bigger annual rents, piling yet more pressure on households already facing severe strain.

In Newbury in Berkshire, advertised rents have jumped by 22.2% over the past year, while in Manchester, the annual increase was 20.5%. In Cardiff, it was 19.6%, in Edinburgh, 18%, and in Birmingham, the figure was 17.6%.

The rise in housing costs has been blamed largely on demand for rental properties, greatly outstripping supply, and leading to intense competition among tenants.

Rightmove warned that the soaring cost of new mortgages triggered by September’s botched mini-budget could worsen the situation, as some would-be first-time buyers who could no longer afford the property they wanted or were keen to wait for it calmer conditions before proceeding may decide to stay renting for longer.

Separate research by iPlace Global, a property technology company, found that 16% of landlords were aiming to sell their buy-to-let property because of rising costs, which could further reduce the supply of rental homes.

Rightmove said the typical advertised private rent outside London had risen to a new record of £1,162 per calendar month, while the equivalent figure in the capital was double that at £2,343.

“There are simply not enough homes available to rent to meet the demand from people inquiring,” said Tim Bannister, the site’s director of property science.

Tenant demand was up by 20% compared with last year, while the total number of available properties to rent was down by 9%.

Studio flats have overtaken one-bedroom properties as the most in-demand flat type for renters, with agents suggesting that a combination of stretched finances and the returning popularity of city centre living were contributing to this shift.

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