Lettings market update, Q2 2022

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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%).

*Figures from Rightmove

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

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Wednesday, 10 August 2022

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