The common month-to-month hire being requested outdoors London reached a report £1,280 within the closing quarter of 2023, in response to a property web site.
Rightmove, which launched the index protecting Britain, stated brokers are receiving 11 inquiries sometimes per accessible rental property.
Nevertheless it added that 2024 is anticipated to be a 12 months when the tempo of rental progress slows down.
A 0.2 per cent quarterly enhance in asking rents within the final three months of 2023 was the smallest leap since 2019, indicating that the tempo of hire rises is slowing.
There have additionally been indicators that extra tenants are hitting the boundaries of what they’ll pay, with almost 1 / 4 (23 per cent) of rental properties needing a discount in marketed hire, in contrast with 16 per cent a 12 months earlier.
Marketed rents within the closing quarter of 2023 have been, on common, 9.2 per cent increased than a 12 months earlier.
Regardless of being a big enhance, Rightmove stated it was the bottom annual progress in rents seen since 2021.
In London, asking rents additionally hit a report excessive, at £2,631 per thirty days on common. This was a 0.2 per cent quarterly enhance, and 6.1 per cent increased than a 12 months earlier.
Rightmove stated it’s the first time that annual progress in asking rents in London has been in single digits since 2021.
The property web site predicts that rents can be 5% increased outdoors London by the tip of 2024, and three per cent up in London.
One of many essential contributors to the slowing of hire rises, and the anticipation of an extra slowdown in 2024, is an enchancment within the stability of provide and demand within the rental market, the web site stated.
Nevertheless it added that the rental market continues to be very busy in contrast with pre-coronavirus pandemic ranges.
Rightmove’s director of property science, Tim Bannister, stated: “The pattern of hire progress progressively slowing continues, with an enchancment within the provide and demand of rental properties having an enormous contribution to that.
“We will’t hold seeing double-digit hire rises yearly as tenant affordability merely can’t sustain, and 2024 is the 12 months we expect there can be a a lot smaller enhance in marketed rents of 5 per cent outdoors of London, and three per cent within the capital.”
Rightmove’s report additionally quoted brokers’ views.
Hayley Brinn, director on the Complete Letting Service, stated: “The market continues to be actually busy, and the excessive variety of candidates per property is being exacerbated by some landlords leaving the market.
“Costs look like levelling out now as extra alternative turns into accessible, with tenants changing into extra price-sensitive, or simply reaching the utmost of what they’ll afford to pay. The costs of bigger properties specifically are slowing down, except the owner accepts a suggestion.
“Some tenants are reluctant to maneuver except they don’t have any alternative, as a result of threat of being charged increased rents elsewhere, whereas different tenants who could wish to transfer are caught as a consequence of their present hire being beneath market worth, and the value hole to maneuver to a bigger home is out of their attain.
“Hire costs slowing this 12 months would profit these tenants wanting to maneuver.”
Peter Lee, director at Redbrik in Sheffield, stated: “It’s vital that landlords are updated on the most recent market tendencies and exercise of their space in order that they’ll value precisely, and safe the perfect tenant for the long run, and minimise void durations.”