London rental market back on track in Q2
London’s stuttering property market has bounced back somewhat over the last three months thanks to a boost in the private rental sector.
According to Rightmove’s latest Rental Trends Tracker report, average rental asking prices in the Greater London region increased 3.4% compared to the previous quarter, meaning average asking rent per month as reached £2,000 from £1,935.
Across the rest of the country, national average asking rents also increased from an average of £775 to £796 – a 2.7% quarterly change marking a 0.7% annual increase.
Slowing supply inflating prices in the capital
Slowing supply of new rental properties in the capital is helping inflate prices and sustain annual growth on a quarterly basis. Average rents are up 3.4%, the highest growth rate for 336 months, which mirrors a supply slow-down of 3.5%.
However, despite strong demand in London, the number of days required to agree a let is 40 days on average, one of the slowest in the country. The fastest regions to ‘let agreed’ include the South West (29), East Midlands and East of England (32 days) and Scotland (34). The national average is 36 days.
Miles Shipside, housing market analyst at Rightmove commented that: “After a few years of more plentiful supply in the London market we’ve now reached a point again where competition among tenants for a great rental home can be very high in the most popular rental areas of the capital.
“This reduced choice could be symptomatic of fewer landlords buying and some selling up as rental returns are being diminished by more onerous tax, and little or no growth in capital appreciation, along with increased demand from tenants.”
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“Outside London, there looks to be more choice for tenants, but those looking to rent in the South West and Yorkshire and the Humber should note that properties are moving faster than this time last year so they may need to move more quickly to secure a good quality home.”