Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Rent prices hit new record as tenants facing ‘crisis like never before’

Rightmove finds record high rates in and out of London

William Mata
Friday 21 July 2023 06:50 BST
Comments
Martin Lewis outlines what to do if you can’t afford your rent increase

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A charity has said that renters are “facing a crisis like never before” after prices in and out of London reached new record highs.

Property website Rightmove has said the average rent being asked outside London has risen to £1,231 per month, while the asking rent for new tenants in London is at a record £2,567.

The asking rent figures, which cover Britain, are for the second quarter of this year and are the highest in Rightmove’s 12-year history of covering the metric.

It added that the average property available to rent is finding a tenant in 17 days, the quickest time period it has recorded since November 2022.

The average asking rent for a typical home outside London is a third higher than during the same period in 2019, increasing by £308 from £923 per month. London rents are 28 per cent (£559 per month) higher than they were at the same time in 2019.

In signs that some landlords are selling up, 16 per cent of properties currently for sale were previously available on the rental market, a figure which is up from 13 per cent in January 2019, Rightmove said.

Responding to the new figures, Polly Neate, chief executive of Shelter, said private renters are “facing a crisis like never before”.

She said: “With private rents racing to record highs, thousands of people are battling to stay in their homes and face the threat of homelessness if they can’t keep up.”

Ben Twomey, chief executive of campaign organisation Generation Rent, said: “This data shows just how unaffordable rents are for tenants in the current market.

People are facing higher mortgage and rent rises
People are facing higher mortgage and rent rises (PA)

“Costs for renters are sky high and there is no more room in tenants’ pay packets for further rent increases.

“These increases are coming in tandem with requests for multiple months’ rent upfront, and need for guarantors, making finding a new home even more difficult.”

Mr Twomey added that the continued return of people to cities including London post-pandemic is driving demand.

Aditi Jehangir, secretary of Living Rent, said: “Rents were already completely unaffordable, our wages remain stagnant and the cost of living continues to bite.

“Any new increase is forcing tenants to choose between paying through the nose for their housing or being forced out of the place they call home.”

The Department for Housing said: “Our landmark Renters (Reform) Bill will deliver a better deal for renters and landlords, including support tenants to challenge unreasonable rate rises so that all tenants have greater security in their homes.

“We are abolishing section 21 ‘no fault’ evictions, giving tenants greater security in their homes and making it easier for landlords to get rid of anti-social tenants.

“We are committed to creating a private rented sector that is fit for the twenty first century and works for responsible landlords while strengthening protections for renters.”

Additional reporting by Vicky Shaw, PA.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in