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The rental prices outside London fell in the quarter at the end of 2024, the first time after the pandemic, signaling the “key turning point” on the housing market in the UK after years of high rent.
The average advertised rental property outside the capital fell 0.2 percent to £ 1,341 between the third and fourth quarter 2024, which indicated the first fall since the end of 2019, the data from the property portal shows on Tuesday.
In London, the limit growth of 0.1 Centar since the quarter is up to £ 2,695, the lowest has been lowest since the beginning of 2021.
While modest, To the right He said that the decline marked the “key turning point” for the market because it ended with several months of record high rent, helped weakened demand and improved real estate supply for tenants.
In the three years to the fourth quarter of 2023, the rental in the UK, excluding London, increased by 25 percent, data showed, increased by higher borrowing costs and low reasons for rent.
“The first quarterly decrease in rent is the pinnacle of months to improve the balance between offer and demand,” said Rightmove Colleen Babcock real estate expert.
The demand pressure appears to alleviate the apartments market, with Rightmoves reported a 16 percent drop in potential tenants’ inquiries, because some renters decide to buy homes in the midst of lower mortgage rates and growing wages.
Some tenants also decide to stay placed and not moving because of the cost, according to Rightmove.
In addition, the re -rental supply has improved in the last quarter of 2024, with an increase in 13 percent availability compared to the previous year, research has shown.
Rightmove said that although there is evidence of some renters who have decided to leave the market, others “maybe bigger” have still invested.
However, the average number of applications per lease assets was still in two -core numbers in 10, twice as much as a pandemic average, indicating a still “very busy” market.
This comes before increasing the customs duties announced in the budget and the entry into force in the spring. From April 1, the level where the real estate payment is worth it is returned to £ 300,000 with £ 425,000 for customers who are for the first time on £ 125,000 with £ 250,000 for others.
The Law on Rentine Rights, which aims to reform the private rental sector and end the “without guilt” evictions, could also affect the market. But Rightmove noticed “no major signs of direct influence” from the legislation that could enter into force this year.
Following the monitoring of rental prices, as well as similar data from Homelet and Zoipla, provide a timely indicator of rental trends from official data, as they follow new tenants, not all rent.
The rent outside London are still 4.7 percent higher than in the end of 2023, but the price growth was marked by its strongest annual pace since the beginning of 2021.
In capital, rental prices increased by 2.4 percent compared to the year, which is the lowest annual rate from the beginning of 2021.
Alex Bloxham, partner and housing leader at Bidwells Consultation Counseling, said: “We see the cooling of what was a furious hot rental market in the last year, where tenants suffered intense competition and consistent rental inflation.”
