Average private rents in Great Britain have fallen for the first time since before the pandemic, with an improvement in the supply of properties helping to cool a “ferociously hot” rental market.
After several years of seemingly relentless rises, with fresh records being hit every three months, the typical advertised rent outside London slipped back in the final three months of 2024 to £1,341 a month – the first decline since 2019.
The figures from the property website Rightmove represent a sliver of good news for tenants, many of whom have had to grapple with sizeable increases to their housing costs during the cost of living crisis.
The new average monthly figure, outside London, equates to a drop of £3 compared with the previous quarter, and typical rents are 4.7% higher than a year earlier. Nevertheless, Rightmove claimed this fall was “a key milestone” after a succession of inflation-busting increases, with annual rent growth peaking at 12% in 2022.
But there was no respite for those renting in the capital: average rents in London continued to rise, reaching a record £2,695 a month, which may be linked to an increase in the number of landlords choosing to sell up and leave the sector.
Rents have risen in recent years as the pandemic, and its fallout, triggered surge in the number of people wanting to relocate for work or lifestyle reasons, leading to more intense competition for a place to live in many areas.
However, this trend may finally be easing off. John Baybut, the managing director at Berkeley Shaw Real Estate in Liverpool, said: “We’ve seen a levelling-off in demand from tenants due to many factors, including the end of the post-pandemic surge for new rental requirements, and some demand heading to the sales market.”
Rightmove said one of the drivers of slowing rental growth had been the gradual improvement in the supply of properties. The number of available homes for rent was 13% higher than at the same time last year, while at the same time, the number of prospective tenants contacting letting agents about a move was 16% lower.
Alex Bloxham, a partner and head of residential lettings at Bidwells, said: “We’re seeing a cooling of what has been a ferociously hot rental market over the last year, where tenants have endured intense competition and consistent rental inflation.”
Rightmove said there was still evidence that some landlords were choosing to sell up. On average, 15% of homes for sale on its site had previously been available to rent in 2024 – up from 13% in 2023. London was the most affected, with nearly one in four (24%) homes for sale having previously been available to rent, compared with one in five (20%) in 2023.
