Rental Trends Tracker: Q3 2022
Rents hit new record & city tenants down-size to studio flats
- National average asking rents outside London have hit a new record, now £1,162 per calendar month (pcm):
- Asking rents jump by more than 3% this quarter (+3.2%) for only the third time on record
- Average London rents rise to £2,343 pcm, leading to the biggest ever annual jump of 16.1%
- More new rental properties are available in every region except London, easing some of the pressure on supply in some areas, however demand still greatly outweighs the number of homes available to rent:
- Tenant demand is up 20% compared with last year, and available properties to rent is down 9%
- Competition among tenants to secure a property is at a record high
- Jump in mortgage rates for new first-time buyers could mean some aspiring buyers stay renting for longer, which will place further strain on the number of available homes
- Studio flats have overtaken one-beds as the most in-demand flat type for renters, with agents suggesting stretched budgets and the returning popularity of city centres are contributing to the shift:
- There are now four times as many tenants looking for a studio flat as there are studio flats available, a 71% increase on a year ago
