UK rents slip for the first time since 2019, but London remains at record highs

For the first time in over five years, UK rental prices outside London have slightly declined by 0.2%, averaging £1,341 monthly. This drop indicates a shift towards equilibrating supply and demand, as rental properties have surged by 13%, while prospective tenants decreased by 16%. Despite this, rental demand continues to exceed pre-pandemic levels. London's rents, however, have reached record highs at £2,695 and remain 4.7% higher than last year. The upcoming Renters' Rights Bill may further influence landlord-tenant dynamics.

Although the monthly difference equates to just £3, Rightmove describes it as a "key milestone," reflecting a slowly improving balance between supply and demand in the rental market.

We're seeing a cooling of what has been a ferociously hot rental market," said Alex Bloxham, head of residential lettings at Bidwells, who notes that any continued improvement in supply should put downward pressure on rents.

Read at Business Matters