Rightmove sees supply in rental properties surge but steady rents – except for London
Asking rents outside London continue to hold up despite the market having more available rental properties, according to Rightmove.
Prices rose 2.8 per cent compared to last quarter, similar to the 2.7 per cent average over the past five years.
Properties marked as available by letting agents on Rightmove are up seven per cent compared to the second quarter of last year outside London, though new rental properties coming on the market are down two per cent.
It’s a similar picture for stock in the capital, with available stock up eight per cent and new listings down five per cent – not surprising, it says, when comparing to the boost from last minute buy-to-let purchases in the second quarter of last year.
Rental prices in London are still running lower than last year and are now 3.2 per cent lower than their peak of £2,020 per month this time last year.
Rightmove’s head of lettings Sam Mitchell says: “Many thought that rental supply would constrict this year, as landlords sold up and looked to invest their money elsewhere, but clearly this isn’t happening yet.
“Perhaps landlords are remortgaging their buy to let properties instead, as they still feel it’s a better investment than looking to other industries. It could spell good news for tenants coming to the end of their lease as they might find there is slightly more choice than last year. Anyone hoping for a drop in prices due to the extra choice will be disappointed though as rents are following a very similar trend to previous years.”
Rightmove has found the top locations in each region that currently offer the best choice for renters.
The top spot in the South East is Ascot in Berkshire, where the average asking rent for a two bed is £1,417 per month. In the North West it’s Salford where a two bed would set you back £842 per month.
The cheapest region is the North East, with Newcastle the location with the best choice for rental properties, at an average of £642 per month.
The findings are based on the areas with the highest number of available rental properties, as a proportion of total housing stock in the areas.