Average advertised rents surpass £1,400 for the first time

The average advertised rent of homes outside London has risen above £1,400 per calendar month for the first time on record, reaching a new high of £1,418 per calendar month.

At a national level, the rental market remains relatively balanced. The number of available rental homes is 2% lower than a year ago, while renter demand is also down by around 2%. This means rents continue to face upward pressure from constrained supply, but without the severe supply and demand imbalance that drove rapid rental price inflation in previous years.

Are landlords selling their rental properties?

Landlord activity remains another important factor affecting the availability of rental homes. The
proportion of all homes for sale that were previously available to rent, an indicator of landlord selling
activity, has remained broadly stable this year at around 13%, and only slightly up on last year (12%).

However, looking at the reverse metric, the proportion of homes to rent that were previously for sale has
decreased from 17% to 15%. While also a relatively small shift, it is an indicator of reduced landlord
investment this year. Higher mortgage rates are the likely driver of this reduction, however the recent legislative changes could potentially be a factor?

At Scargill Mann & Co we have noticed landlords that are or have sold, haven’t been influenced by the changing lettings landscape and are selling due to other factors, either personal or timing.

Regional overview East Midlands

In our region the rental market remains strong. Gross Rental Yields are up to around 7% with an average rent of around £1,300 pcm. Tenant demand across our region remains high and properties are letting quickly when advertised at an achievable rental price. The outlook is positive as we move into Q4.

All data has been taken from Rightmove Q3 Rental report