It’s official: rents are higher than ever. But with whispers of tax hikes and stricter energy rules, are we about to see a landlord exodus?

Rightmove’s latest data reveals the average rent outside London has skyrocketed to a staggering £1,344 per month. That’s a hefty 5.2% jump compared to last year.

London Landlords

The capital hasn’t escaped the surge. London landlords are now asking a record-breaking £2,694 per month, a 2.5% increase year-on-year.

Tenant Demand is Cooling (Slightly)

Remember the days of 20+ hopeful tenants battling for one flat? Things have calmed down a tad. While there are still more tenants than properties, Rightmove reports an average of 15 enquiries per property, down from 23 last year.

Landlords Slashing Prices: A Sign of Things to Come?

Here’s a surprise: over 21% of landlords are dropping their asking rents to secure tenants. This could be a sign that some are feeling the pinch of potential tax changes.

Capital Gains Tax: The Looming Threat?

Rumours are swirling about a potential capital gains tax hike in the Autumn Budget. This could make it less profitable to sell rental properties, potentially deterring new investors.

Energy Efficiency Rules: The Heat is On

By 2030, all rental properties will need an EPC rating of C or above. With 2.9 million properties needing upgrades, this could cost landlords a hefty £8,074 per property on average.

Is the Tide Turning Against Landlords?

Rightmove’s survey revealed that half of landlords are worried about the cost of meeting EPC regulations. Meanwhile, one in five tenants believe these regulations should be a top priority for the government.

What Does the Future Hold?

Rightmove’s Tim Bannister suggests that the government needs to step in with measures to support landlords, such as incentives for energy-efficient upgrades or tax relief. Without this support, we could see more landlords selling up, further shrinking the already limited rental market.

Rent Increase at a Glance:

Region	Average Rent (Q3 2024)	Quarterly Change	Annual Change
England & Wales (Excl. London)	£1,344	+2.3%	+5.2%
Greater London	£2,694	+1.2%	+2.5%
Inner London	£3,175	+1.4%	+1.6%
Outer London	£2,341	+1.0%	+3.4%

The bottom line? While rents are soaring, the future for landlords remains uncertain. Keep an eye on the Autumn Budget – it could have a major impact on your investments.