New data from two property portals shows that UK rental prices have once again reached record highs.

Rightmove reports that the average rent for a new tenancy now stands at £1,577 per month, up 3% on last year. Meanwhile, flatshare website SpareRoom says the average room rent has climbed to a record £753 per month, a modest 0.8% annual increase, but still the highest figure on record.

Despite signs of cooling tenant demand, the imbalance between supply and demand remains acute, with the number of available homes still 27% below pre-pandemic levels.

Regional Disparities in Rent Growth

While London’s rent growth has slowed, with Rightmove recording just a 2% annual increase, in the other regions rents are rising much faster. Advertised rents are rising quickest in the North West, at 10% higher than a year ago.

Colleen Babcock, Head of Partner Marketing at Rightmove, says: “There are challenges for both tenants and landlords in the current market.

“While tenants looking to move have more choice and less competition from other tenants compared with a few years ago, some may still find their options limited with rents at record levels.

“Meanwhile, landlords are bracing for big legislative changes in the Renters’ Rights Bill, and the rumoured tax changes have added an element of uncertainty heading into the autumn.”

Landlord uncertainty

For landlords, the pressures are mounting. Rightmove’s research found that one in three landlords is considering exiting the market altogether, with two-thirds (66%) saying they feel unsupported by government policy.

The most cited frustrations are taxation changes and increasing regulation (68%), which many say are driving them to consider selling or reducing their property portfolios in the coming year.

SpareRoom similarly noted “low confidence” among landlords awaiting the passing of the Renters Rights Bill, contributing to cautious behaviour in the sector.