The average asking rental price in the UK has risen at the fastest rate on record, a major property company has found.
Rightmove’s quarterly rental trend tracker found that the average asking price per calendar month is £1,068 outside London and £2,142 in the capital.
This is an increase of 9.9% for the rest of the United Kingdom and 6.1% for London.
The real estate giant also predicted that asking prices will rise another 5% this year, as competition among tenants for available properties nearly doubled in the previous year.
The number of available properties is also 51% lower than the same period last year, resulting in properties being filled in just 17 days on average.
The average rental yield, the value of the rent you can expect to receive from your property in a year, is at its highest level since 2016 in Britain at 5.5%, the North East and Wales recording record yields.
The rise in rents is outstripping house prices in all regions except the East Midlands, South West and South East, Rightmove said.
The annual asking rental price in Wales increased by 12.7%, followed by the North West which jumped by 12.5% and the South West which rose by 11%.
London has reached record annual growth of 10.9%, with asking prices in the capital now 3% higher than before the start of the pandemic.
The effects are also being felt on a smaller scale, as Pontypool in Monmouthshire, Wales, saw the biggest annual increase in asking price of any local area, rising 20% from £562 a month to £674 .
Ascot saw an 18.8% increase while Littlehampton saw a 17.5% rise.
Rightmove’s director of real estate data, Tim Bannister, said: “Tenant demand continues to be very high at the start of the new year, which means that the imbalance between supply and demand is likely to continue until to more choice in the tenant market, which led to our forecast of a further 5% increase in average asking rents in 2022.
“Landlords understand the importance of having a good long-term tenant, and there’s a limit to what tenants can afford to pay, which will prevent rents from rising at the same rate we’ve seen in the past. over the past year.”
The rise reversed a downward trend seen during lockdowns, when there was an increase in tenants wanting garden homes outside cities.
At the end of 2020, London saw a near-record 6.4% drop in average asking rents as landlords lowered prices to entice tenants to stay in their properties.