Rents are rising at the fastest rate on record—and there’s no sign of them slowing down in 2022. Average asking rents have reached £1,068 per calendar month, a rise of 9.9% in the last twelve months, according to Rightmove Property Data. *
This is the highest price jump on record, despite disruptions caused by the pandemic, and was driven by high demand and a low number of rental properties on the market. Rental values are increasing at such a fast pace that they are surpassing house price growth.
So, what is happening to the rental market this month?
Supply and Demand Imbalance
The imbalance between strong tenant demand and limited rental homes on the market has led to intense competition between tenants, doubling in the last year, with tenants snapping up properties in just 17 days of being on the market. **
However, the number of available rental homes is up 7% from December, indicating signs of more options coming to market in 2022, according to Rightmove. **
Flats have experienced the biggest increase in competition in the last year, rising by 132%, followed by terraced houses (40%) and semi-detached houses (30%). **
With demand high and stock low, now is the ideal time to rent out a property.
Landlord Yields Are Up
Newly published statistics from Rightmove have revealed that the average yield across the UK is 5.5%, the highest figure since 2016. **
Yields in the Northeast and Wales have reached record highs and yields in the Southwest and Yorkshire are seeing their highest levels for 7 years. whereas the East and Southeast of England have reached their highest levels in six years, indicating a buoyant rental market in 2022.
The rental market is on fire this month, and now is a great time to think about letting out a property to see the biggest yields.
Want to take advantage of the white-hot rental market? Book a valuation to find out the rental value of your property.
*According to Nationwide data and market analysis
** According to Rightmove property data
