Another index is showing that a scarcity of rental properties has prompted a rise in every single region of Britain – and creating record rent levels outside of London.
The Home property website, which provides a monthly market snapshot, says tents are up 3.7 per cent on average since August 2020.
The largest annualised average rent hikes remain in the East of England, up a striking 10.1 per cent, and the West Midlands with an even larger rise of 11.7 per cent.
The site says London, too – for many months the only significant area not benefitting from a booming property market – is seeing a revival in its rental and sales sectors at last.
It says confidence is returning to the capital’s sales market because renters are returning and prompting substantial rent rises in many central boroughs as the supply excess falls – and thus landlords are no longer tempted sell in such great numbers.
Home says: “The London exodus has halted and is clearly undergoing a reversal. This redirection of demand is taking some pressure off the regional rental markets as tenants return to the capital. However, such is the continued and worsening scarcity of rental stock in the regions that this trend reversal is unlikely to cause a fall in rent levels in the near term.”
On the sales side, Home says the total stock of property for sale in England and Wales has dropped again to a new record low of 266,369 – that’s no less than 37.5 per cent lower than in August 2020 and 45.3 per cent less than in August 2018.
Monthly supply of new instructions also remains vastly below normal expectations, the site notes – down 38 per cent compared to just over a year ago.
The South West is worst hit by scarcity – down just over a half in the past year – while Greater London, until now plagued by oversupply, has also seen a recent fallback.