A recent market report by the leading property portal Rightmove has showed that a drop in available rental properties has pushed rental values to a record high.
The average rent outside London reached over £800 per month for the first time. The rise of 0.8% is the biggest price jump at this time of year since 2015. Furthermore, there are 8.7% fewer rental properties available on the market compared to this time last year.
The main driver of this increase is the lack of available rental properties and competition among prospective tenants who are looking to rent. For example Birmingham has 5 universities and the number of students in the area looking to rent a property has helped drive up demand.
Miles Shipside, commercial director and housing market analyst at Rightmove said,
“Although some of the shortfall in supply will be met by quality housing provided by Build to Rent schemes in the coming years, it’s likely stock shortages will remain in areas with high concentration of renters.”
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