The latest figures from Rightmove show that average advertised rents outside London have hit a record high of £1,314 per month, an impressive 7% increase from last year. In London, rents have also surged to a new record of £2,661, a 4% jump from last year.

Demand is Still Sky High

While rent inflation has slowed down from the 16% peak seen in 2022, there’s still a huge demand for rental properties. On average, each property received 17 enquiries from desperate tenants, although this is down from 26 last year. Despite this slight decrease, the number of enquiries is double what it was in 2019, highlighting the ongoing shortage.

Shortage Means Big Opportunities for Landlords

The number of rental properties has increased by 14% compared to last year, but it’s still 20% lower than pre-pandemic levels. This means there are thousands of tenants competing for a limited number of properties, putting landlords in the driver’s seat.

Government Support Needed

Rightmove has called for government support to encourage more landlords to invest in the private rental sector. They believe that an extra 120,000 rental properties are needed to bring rent growth back to pre-pandemic levels. This could be achieved through various measures like tax changes, incentives for energy-efficient upgrades, and a more supportive government attitude towards landlords.

Where are the Best Returns?

The North East saw the highest year-on-year rent inflation at 10.3%, followed by the West Midlands at 9.3% and Scotland at 7.9%. These regions offer fantastic opportunities for landlords looking for substantial returns.

Landlord Investment: A Win-Win

With rents at record highs and strong demand, now is the perfect time for landlords to invest in the property market. By adding to the stock of available rental properties, landlords can not only secure a healthy income stream but also contribute to a more balanced rental market.