The average asking price for new rental contracts increased by over 10% in the last year - the highest amount since Rightmove started keeping records. Manchester is up by a remarkable 19%.
Average rent rises outside of London up by double digits for the first time.
Over the last five years, the government has been implementing policies to make investment into buy to let properties less attractive for private landlords, first through the reduction in mortgage interest tax relief for higher rate taxpayers, then by implementing a stamp duty surcharge.
Now those policies have come home to roost. The stock of private rentals has decreased by around 300,000 from a peak of 5 million since 2016. This comes at a time when the easing of pandemic restrictions has caused a peak in demand, particularly in the major cities.
The average advertised rent on Rightmove's portal increased by 10.8% over the last year, prompting them to describe the current rental market as "the most competitive on record".
New London rents now stand at an average of £2,193 a month, 14.3% higher than a year ago. Swansea and Manchester are up by 19.7% and 19.3% respectively.
Every region in the UK saw increases of over 10% except the South East (9.6%) and East Midlands (9.2%).
Knight Frank believe that rental growth will continue, commenting “In later years, supply will remain tight, but we are forecasting that earnings growth will act as the main driver behind rents, resuming a long-term relationship and supported by a robust outlook for the employment market. There is scope for stronger rental growth in areas of the country where rents are relatively more affordable, particularly in the North and Midlands.