Rental demand - and prices - hits new highs

Easing restrictions and renewed optimism are driving rental demand to levels not seen before, with the North West, South West and West Midlands leading the way. With supply constrained, rents reach new highs, up more than 8% in the last year.

Landlords have been increasing rents over recent months, but tenants keep on coming, in record numbers.

"I have been doing this for 20 years and, in the rental market especially, I've never seen anything like it"  commented of one Manchester city centre letting agent.

He's not alone. According to the Association od Residential Letting Agents, their members are seeing more tenant applications than at any previous time. The number of new registrations has reached 102 per month, per branch.

The North West saw the highest number at 166 per branch, followed by the South West and the West Midlands, both in excess of 150.

Against that, the net increase in properties managed by the same agents rose by just 20 per branch.

This clear disparity has driven a rise in rents. Nationally, the average monthly rent reached £1,059. However, with high prices and a huge rental stock, London distorts those numbers. In the capital rents reached £1,645, just short of pre-pandemic levels. Outside of London, the average rental is now £878, up by 8.7% on a year ago.