After years of steady increases in rental prices, we’re seeing a shift in the market. Our latest Rental Trends Tracker has revealed the first quarterly drop in average asking rents since before the pandemic, bringing welcome news for tenants across Wigan and the North West.
The average rent outside of London now stands at £1,341 per month, a slight decrease of 0.2% compared to the previous quarter. While this only equates to a £3 drop, it marks an important turning point after years of consistent price growth. Additionally, the supply of rental homes is improving, helping to ease the pressure that has defined the market in recent years.
What’s Happening with Rental Prices?
This quarter’s drop in average rents is the first decline since 2019, following years of record-breaking highs. However, rents are still 4.7% higher than this time last year, though this is the slowest growth rate we’ve seen since 2021 and significantly lower than the 12% peak in 2022.
Here in Wigan and the North West, we’re seeing similar trends, with rental price growth slowing as more properties become available. The easing of demand means renters may have more options, though competition remains strong.
The rental market in London tells a different story. Rents in the capital have reached their 13th consecutive quarterly record at £2,695 per month. However, the pace of growth has slowed dramatically, with only a £1 increase (+0.1%) this quarter. Inner London’s rents now average £3,180, while in outer London, they stand at £2,341.
A key factor in this shift is the increase in available rental properties. Across Great Britain, rental home availability is up 13% compared to last year, while the number of people searching for rental properties has fallen by 16%.
Expert Insights
Property experts, believes we are seeing a rebalancing of the rental market. “While tenants are still paying more than last year, the speed of rent increases is slowing down.” However, she highlights that “the market remains competitive, with rental properties still receiving an average of 10 applications – twice as many as before the pandemic.”
“We’re seeing demand level off as tenants reassess their needs post-pandemic. Some renters are also considering purchasing instead.”
With more properties on the market, tenants are becoming more selective about their choices.
Across the UK, regional differences remain. The North West, including areas like Wigan, has seen a noticeable increase in rental property availability, giving renters more choice. The North East has seen the largest improvement in rental supply, with 30% more homes available, while Wales has only seen a modest 3% increase. Meanwhile, some locations continue to experience sharp rent increases – Durham has seen a 26% rise to £889 per month, while Birkenhead rents have jumped 16% to £750.
Looking Ahead: What to Expect in 2025?
Looking forward, there are signs the market is stabilising. The upcoming Renters’ Rights Bill could bring significant regulatory changes later this year, but as of now, its impact remains minimal.
One notable trend is the growing number of landlords opting to sell. In 2024, 15% of properties for sale were previously rental homes, up from 13% in 2023. This trend is particularly pronounced in London, where 24% of homes for sale were formerly rental properties, up from 20% last year.
While some tenants are choosing to stay put, landlords are taking varied approaches – some are selling, while others (especially larger landlords) continue to invest. These shifts indicate a period of market adjustment ahead.
Top Tips for Finding Your Next Rental Home
Even with increasing availability, rental properties remain in high demand. Here are some key tips to help you secure your ideal home:
Act fast: Set up instant property alerts and establish relationships with local letting agents. Early awareness of new listings is crucial. Know your priorities: Define your must-haves, such as budget, location, and number of bedrooms, to streamline your search. Be paperwork-ready: Have references, proof of income, and any necessary documents prepared to speed up the process. Stay flexible: If possible, being adaptable with move-in dates or lease terms can improve your chances of securing a property.
If you’re looking to rent, buy, or sell in the local area, we are here to help. Get in touch with our expert team today to discuss your property needs!
Adapted from Rightmove.
