In March, the average monthly rent for a newly let home in Great Britain hit a record high of £1,236. This is an annual increase of 10.8%, the second largest since our records began, exceeded only by 11.5% growth recorded in May 2022.
As a consequence of the rise, the average tenant taking on a new lease will be paying an extra £1,452 each year. The number of rental homes coming on the market in March rose for the seventh consecutive month from a low base, but demand is also higher.
London regained its place at the top of the rental growth chart with an average annual 16.2% increase to £2,178-a-month. Inner and Outer London grew at a similar rate.
This was a reversal of the pattern of 2022 when rents in Inner London rapidly recovered from Covid lows
The other regions in the South of England lagged behind London, however, these are the locations where affordability is also stretched. Rents in the Midlands and North advanced by 9.1% and 9.8% respectively.
In 2022, larger properties led the field in rental growth. But now smaller homes have moved to the fore. In the 12 months to March the average rent for a one-bedroom property jumped by 11.9%, nearly double the 7.2% rate recorded in March 2022. Annual growth for a three-bedroom home has decelerated to 9.1%, against 11.3% in February 2022.
