The average advertised rent of new properties coming onto the market outside of London has risen by 0.6% this quarter to a new record of £1,349 per calendar month (pcm).
At the same time the number of new properties coming into the market in March was 11% ahead of the same period last year, and the overall number of rental homes available is 18% ahead of last year.
Colleen Babcock, property expert at Rightmove, said: “The rental market is still really busy, and as the regional picture shows, it’s likely to feel even busier in some areas of Great Britain than others.
“It’s good news for tenants that on the whole, the balance between supply and demand is improving. This is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price.”
The number of prospective tenants looking to move is 7% lower than at this time last year.
An increase in buy-to-let lending is helping to bring more supply into the rental market.
The latest snapshot from UK Finance shows that at the start of this year, the number of new buy-to-let loans is up by 32% compared to the start of last year.
Another factor likely helping is a transition from some renters into the first-time buyer market.
Over the last five years, average rent rises have outpaced increases in wages. Average earnings are up by 31% since 2020, versus a 40% increase in rents.
Christian Balshen, lettings expert at Rightmove, said: “I don’t expect the Renters’ Rights Bill to have much of an impact on market activity, but there are a lot of wider implications for tenants and landlords.
“The banning of rent in advance for example, may make it more difficult for some types of tenants to secure a home, particularly in high-demand areas.
“Supply and demand in the rental market is really varied at the moment across Great Britain. The number one thing landlords will still want is a good, reliable, long-term tenant, and there’s likely to be even more emphasis on this once the Bill comes into effect.”
