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%).
*Figures from Rightmove
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