Rents jump as tenant demand hits all-time high

Tenant demand has hit an all-time high, and asking price rents are continuing to jump.

The new figures suggest growing affordability issues for tenants priced out of the house purchase market, especially given that yesterday it was announced that Britain has 0% inflation.

Rightmove this morning reported a 52% increase in email inquiries from tenants received in quarter two compared with the same period last year.

The site also said that asking price rents outside London jumped by 2.7% in the second quarter of this year, and within London by 2%.

The average asking price rent in London was £2,052, fractionally down on the £2,011 of quarter one, but up 4.5% on quarter two in 2014.

Outside London, asking rents went from £741 in quarter one to £761 in quarter two – a rise of 4.2% on quarter two last year.

The figures, released by Rightmove this morning, also show the biggest jump in the south-east, where there was a 4.1% rise in quarter two compared with quarter one.

Other than London, only in Wales and the north-east were there falls in asking price rents – of 2.9% and 0.5% respectively.

Sam Mitchell, head of lettings at Rightmove, said: “Rents have grown this quarter in nearly all regions of England and Wales, fuelled by demand outstripping supply in many of the sought-after areas, especially in the east of England and the more affordable areas of London.

“The smaller rise in the capital is likely to do with the fact that costs in many areas are nearing many people’s affordability ceiling.”

Asking price rents for London at £2,052 are now almost twice that of the second most expensive region, the south-east (£1.078). The capital is also almost four times pricier than the cheapest region, the north-east (£534).

Altogether, Rightmove measured 249,357 asking rents. None included short lets.