The average asking rent outside London has increased by 3.4 per cent year-on-year to a record high of £845 a month, figures from Rightmove for the second quarter of the year have shown.
The increase was the strongest annual rise in four years, while quarter on quarter rents outside the capital were up by 3.7 per cent.
In London, however, advertised rents fell by 0.6 per cent year on year and by 2.8 per cent quarter on quarter to £2,046.
Rightmove says this is the result of available properties soaring by 41 per cent as homes that were previously holiday lets have been put on the market as long term rentals.
Overall rental demand is at a record high, which may lead to further upwards price pressure except in areas of over-supply.
Meanwhile, a new survey of 400 landlords by Rightmove has found that despite growing concern over risks of greater rent arrears, a quarter are still planning to acquire new buy-to-let properties.
Rightmove commercial director and housing market analyst Miles Shipside says: “The pause in the rental market has led to some distorted figures over the past few months, especially in cities where landlords with short-term lets made the swap to instead try and find a long-term tenant.
“Both rents outside London and demand being at a record high isn’t good news for many tenants looking to move right now, especially as we know there will be even more competition for those attractive properties with more space, bigger gardens and a spare room.
“There are early signs that some existing London renters are looking to move further afield, adding to the large increase in the number of properties up for rent on Rightmove in the capital, so prospective tenants there could find there’s some room to negotiate especially if they are happy to sign a longer-term contract than usual.
“Many renters may feel they’ve been left out of the chancellor’s recovery packages, but one glimmer of hope is that the temporary stamp duty savings may entice more investors to expand their portfolio.
“If this does happen we could see more choice for tenants and in turn prices may stabilise for a while, but it will take some time.”
