The cost of renting across Britain has climbed to another record high, with a shortage of available homes continuing to put pressure on tenants.

According to the latest rental market data, the average advertised rent outside London has risen to £1,397 per month, up 1.9% during the second quarter and 2.3% higher than a year ago. London has also reached a new record, with average advertised rents now standing at £2,791 per month.

Fewer Homes Available

One of the biggest drivers behind rising rents is a lack of supply.

For the first time since 2022, the number of rental properties available has fallen below the previous year's level. Rather than homes being let more quickly, the decline appears to be caused by fewer new rental properties coming onto the market.

While tenant demand has eased compared with the frantic competition seen during 2022, there are still around 10 enquiries for every available rental property, highlighting that competition remains intense in many parts of the country.

Affordability Still a Challenge

Although annual rent growth has slowed from the double-digit increases seen a few years ago, the continued rise in rental costs is adding further pressure to household finances.

With wages growing more slowly and everyday living costs remaining high, many renters are finding it increasingly difficult to save towards a deposit for their first home.

What It Means

The figures underline the ongoing imbalance between supply and demand in the rental market. Unless more homes become available, tenants are likely to continue facing rising rents and limited choice.

For aspiring first-time buyers, today's market reinforces the importance of preparing finances early and exploring all available mortgage options to make the move from renting to homeownership