Lettings market update, Q2 2022

Rents grow at fastest annual rate in 16 years

• Average asking rents outside London hit another new record of £1,126 p/m, up 3.5% vs. last quarter and 11.8% vs. last year:
  • Average asking rents outside London have jumped 19% (+£177) in the two years since the pandemic started, the same growth in rents that took eight years pre-pandemic to reach.
  • This quarter's 3.5% jump in asking rents is the second highest in ten years.
  • London also sees new record average asking rents of £2,257 pcm, with annual growth now exceeding 15%, the highest ever annual rate of any region.
• Number of new rental properties coming to market improving but still down on last year's levels:
  • New rental listings are up 8% in June compared to the start of the year.
  • Rental demand is up 6% compared with last year and available properties are down 26%.
• We've revised our forecast upwards from 5% to 8% growth in asking rents by the end of the year due to sustained high demand and slow speed of stock recovery.
• Average monthly rental payments are now 40% higher than they were ten years ago, while average mortgage payments for the same properties are up 13%.
• Despite challenges, more landlords are planning to expand their portfolios in the coming 12 months (34%) than reduce them (11%).

For the full Rightmove report, please click here

If you're thinking of renting or letting, you can contact one of your local property experts at PFK today by clicking here