UK Advertised Rents Reach New Record Highs Amid Supply Recovery

Rents across Britain have reached new record highs, with the average advertised rent outside London rising to £1,385 per month and London rents hitting £2,736, marking increases of 3.1% and 1.6% respectively over the past year. Despite a 9% increase in rental property availability compared to last year, supply remains 23% below pre-pandemic levels from 2019, contributing to continued affordability challenges for tenants. The rental market has seen slower growth in fresh listings and cooling tenant demand, influenced by factors such as increased stamp duty on rental home purchases, uncertainty surrounding the upcoming Renters' Rights Bill, and potential new taxes on landlords. Landlords are increasingly cautious about investing due to high mortgage costs, legislative uncertainty, and shifting tax rules, with some considering exiting the market, while refurbishment projects have become a popular alternative to new builds in office markets like Bristol's Eastern Fringe. The ongoing "light to quality" trend in office space demand, alongside significant recent leasing activity, reflects robust market conditions despite relatively high vacancy rates. Experts call for policy measures such as rent caps and national affordability commissions to address the mounting rental affordability crisis affecting millions of private renters in England.