Rental prices: Rightmove analysis shows average rent prices outside of London hit a staggering 'new high'

• Average monthly rent outside London has reached a record high of £1,316
• This represents a roughly 7% increase in average advertised rents compared to last year
• In London, the average advertised rent is now £2,652 per month, a 4% increase from a year earlier
• Rightmove is urging the next government to accelerate housebuilding and encourage landlord investments to balance supply and demand
• The pace of rental price growth has slowed from its peak of 12% two years ago but remains significantly higher than pre-pandemic levels
• Scotland faces the biggest supply and demand imbalances, with other affected regions including the North West, South West and North East

The average monthly rent outside London has reached a record high of £1,316, according to a property website.

Rightmove's analysis for May shows that this new record across Britain, excluding London, represents a roughly 7% increase in average advertised rents compared to the previous year.

In London, the average advertised rent is now £2,652 per month, marking a 4% increase from a year earlier, the website reported.

With the General Election today (4 July), Rightmove said that the next government should accelerate housebuilding and encourage landlords to invest in more homes for tenants.

This would help address the supply and demand imbalance in the rental market and stabilise annual rent growth.

Rightmove said the pace of growth in rental prices has eased from its peak of 12% two years ago but it remains significantly higher than the “more normal” level of around 2% per year seen before the coronavirus pandemic.

It added that an improvement in the balance between supply and demand in London has contributed to a slowing of rental price growth. By contrast, Scotland is currently the hardest hit by supply and demand imbalances, Rightmove said.

Tim Bannister, a property expert at Rightmove, said: “We’ve been talking about the imbalance between supply and demand in the rental market for a long time now, so it’s easy to forget that there was a time before the pandemic where rental price growth was more stable.”

He added: “The next government should be prioritising an improvement to the planning process, an acceleration of house building, and encouraging more supply into the rental market.”

Nathan Emerson, CEO of property professionals’ body Propertymark, said: “Propertymark has long argued that the private rental sector needs more houses to stabilise rental prices but there is a myriad of other factors that can contribute towards making the market more attractive for both investors and tenants.

“Propertymark would like to see the next government reform the tax system so that more investors can be persuaded to invest in the private rental sector and lower rents for tenants in the long term.

“Whilst we support a greater supply of houses, there has to be a sensible deliverable programme mindful of protecting the green belt wherever possible.”

Here are average advertised rents and the annual increase, according to Rightmove:

• North East, £894, 11%
• West Midlands, £1,180, 10%
• Scotland, £1,067, 9%
• East of England, £1,597, 8%
• North West, £1,146, 8%
• Yorkshire and the Humber, £1,022, 8%
• South West, £1,425, 7%
• East Midlands, £1,150, 7%
• South East, £1,836, 6%
• London, £2,652, 4%
• Wales, £1,065, 4%

And here are the areas of Britain with the biggest imbalances between supply and demand, as indicated by Rightmove’s data:

1. Scotland
2. North West
3. South West
4. North East
5. West Midlands
6. Wales
7. Yorkshire and the Humber
8. East of England
9. East Midlands
10. South East
11. London

What are your thoughts on the rental prices and the potential solutions proposed by Rightmove? Do you have any experiences or insights to share about the housing market in your area? Join the conversation and share your opinions in the comments section.