The average asking rent for a home in inner London has reached a new record of £3,124 per month, according to Rightmove.
Advertised rents have gone up 11.6 per cent since last year in the more central boroughs.
Rents are up as much as 12.1 per cent in the outer reaches of London, where the average rental is now asking £2,627 per month.
This suggests rents are already about to outpace the £2,700 a month that London mayor Sadiq Khan warned Londoners would face by 2024 unless a rent freeze is introduced.
One of the factors driving rising rents is a lack of available rental properties to meet the demand from prospective tenants looking to move, Rightmove said.
While Rightmove reports that a new rental put on the market in the UK now attracts an average 25 enquiries, compared to just eight in pre-pandemic 2019.
The situation in London may be far more competitive. A London rental property coming onto the market will recieve 107 enquiries on average, according to lettings agent Hello Neighbour.
With demand far outstripping supply, London’s 2.7 million private renters are trapped between escalating rents and a lack of options if they can’t afford to stay or are forced to move.
“Record rents and far more tenants looking to move than there are homes available means it will still feel very difficult for many tenants navigating the market,” said Rightmove’s director of property science Tim Bannister.
A recent report from Hamptons warned that London rents could rise by 25 per cent by 2026, growing twice as fast as house prices.
According to the latest figures from housing charity Shelter, two in five of London’s private renters - around 680,000 people - are one missed pay cheque away from being unable to pay their rent.
Excluding London, rents across Britain reached a record high of £1,278 per month in the third quarter of this year, according to Rightmove.
It marks the 15th consecutive quarter that average advertised rents have risen to a new record.
In the third quarter of 2023, average advertised rents across Britain but outside London were 10 per cent higher than this time last year.
Rightmove’s five top tips for renters
1. Move Fast
Moving fast to set up a viewing is key, which can be difficult when juggling other commitments.
Having instant property alerts set up, and getting to know local estate agents can help to make sure you’re one of the first to know about a new property.
2. Be clear
Be clear about your non-negotiables from the start. This includes your max budget, how many rooms you need and how long you intend on staying at the property.
This will help avoid going on viewings where the property isn’t quite right, and help agents suggest the most suitable other properties if one doesn’t work out.
3. Be flexible
Being flexible on a move-in date is tricky, but it can be an attractive addition to a tenant application.
This is easier for first-time renters, but if you’re already renting, considering if you have any options to temporarily move in with friends or family to fit around the new property move-in date could help you.
4. Get organised
It’s really important to be organised and have your finances and documentation in order early, to be able to move through the tenancy application process smoothly and quickly.
This includes having the deposit ready to go, references lined up, and a guarantor secured if you need one.
5. Expand your search
Renters are increasingly looking outside of traditional hotspots and widening their search when looking for their next home.
If you’re able to expand your search it could open up more options to find available properties, and you could potentially find some cheaper properties too.
