Rental prices continue to have a massive impact on people during the cost of living crisis (Picture: Getty Images)
The average price of a rental property for regions outside of London have hit record highs of £1,231 per month, figures released by Rightmove reveal.
Record highs have also been reached in London, where the average price for a rental property now stands at £2,567 a month.
The average rent figures cover the second quarter of 2023 and the average rental property is snapped up in just 17 days, the fastest since November 2022.
The average asking rent for a typical home outside London is a third (33%) higher than during the same period in 2019, increasing by £308 from £923 per month.
Meanwhile London rents are 28% (£559 per month) higher than they were at the same time in 2019.
Matt Hutchinson, director of Spareroom, told Metro.co.uk the impact this rent rise will have on renters.
Matt Hutchinson, CEO of SpareRoom, said people are turning down jobs because they don’t want to move (Picture: SpareRoom)
He said: ‘One huge issue is that renters are simply staying put to avoid higher rents, even if they want to move.
‘People are even turning down job offers and career opportunities to avoid having to move in such a manic market.
‘That could have a serious knock on effect for the economy as a flexible, mobile workforce is essential.
‘In the longer term, if rents keep increasing the way they have been, we run the real danger of London simply becoming unaffordable.
‘What happens then? Does the capital just become a theme park for the rich and tourists?’
Mr Hutchinson also talked about the reasons behind rent price increases which have been driven by a number of factors.
Experts warn London could soon become unaffordable and a playground for the rich and tourists (Picture: Getty Images)
‘Rents are at all time highs in every single region of the UK and in almost every major town and city. This isn’t simply a London issue, it’s happening right across the UK,’ he said.
‘There are two key factors – the first is a huge spike in demand post-covid (with several factors contributing) and the second is a big drop in supply of properties over the past seven years.
‘Government is pushing smaller buy to let landlords out of the market, but nobody’s replacing them. So we’re losing huge chunks of rental stock, much of which is going to short-term and holiday lets.
‘We don’t have a hotel room crisis, we have a housing crisis, so unless government has plans to increase the supply of rental properties, it’s hard to see how anything will change in the near future.’
Around 16% of properties currently for sale were previously available on the rental market, signs that landlords are selling up.
This is a figure which is up from 13% in January 2019, Rightmove confirmed.
Richard Donnell, director at Zoopla, offered some advice to renters (Picture: Zoopla)
Richard Donnell, director at Zoopla, told Metro.co.uk about the further pressures renters face and offered some advice.
He said: ‘Although rental growth is running in double digits for the 15th consecutive month – it’s important to note that this is only for new lets agreed.
‘For some renters, it could be a smart move to stay place in their current rental as they will usually experience a smaller rental increase.
‘Renters continue to face a relentless increase in rents, which is compounded by wider cost of living pressures and making home moving decisions ever more challenging, especially for singles and those on lower incomes.
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‘Rents also continue to rise due to a chronic shortage of homes for rent, which is being stoked by a strong jobs market, record immigration and rising mortgage rates making home buying more expensive and delaying the plans of would-be first-time buyers.’
Lynne Lancaster, head of estate agency at Penrith Farmers and Kidd’s, said: ‘Demand continues to well outstrip supply and we are actually seeing more tenants stay put for longer rather than move after the agreed term.’
Rightmove’s director of property science Tim Bannister added: ‘Average asking rents for new tenants have risen at a rapid pace since the pandemic, reflecting the significant increase in demand, which is driven by a combination of factors including changed housing needs, such as some space to work from home.’
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‘People are even turning down job offers and career opportunities to avoid having to move in such a manic market.’
