--- title: UK Rental Market Hits Record Highs Amid Supply Shortage description: UK rental prices hit record highs due to a supply shortage. Strategic interventions & investment opportunities abound for property investors. Read more here! image: https://blog.magnateassets.com/hubfs/UK%20Rental%20Market%20Hits%20Record%20Highs%20Amid%20Supply%20Shortage.jpg --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # UK Rental Market Hits Record Highs Amid Supply Shortage Published by Keith Egan on Sep 13, 2024 The latest data from Rightmove highlights an unprecedented surge in rental prices across the UK, revealing an ongoing supply-demand imbalance in the rental market. As of June 2024, average advertised rents outside of London have reached a record £1,316 per calendar month, while in London, the average stands at £2,652 per calendar month. ### **Rising Rents Driven by Supply Shortage** The 7% year-on-year rent increase outside of London underscores the critical shortage of rental properties. Although the pace of rent growth has moderated from its peak of 12% two years ago, it remains significantly higher than the pre-pandemic average of around 2% per year. Rightmove's analysis suggests that an additional 120,000 rental properties are needed to restore a more sustainable rent growth rate of 2% per year. ### **Regional Variations in Rental Prices** The impact of the supply-demand imbalance varies across regions, with Scotland experiencing the most significant strain. Conversely, [London](https://www.magnateassets.com/en/location/london)has seen some improvement, attributed to a 15% decrease in tenant demand and a 16% increase in available rental properties. #### **Average Advertised Rent by Region:** | **Area** | **Average Advertised Rent** | **Increase in Advertised Rent vs Last Year** | | --- | --- | --- | | North East | £894 | +11% | | West Midlands | £1,180 | +10% | | Scotland | £1,067 | +9% | | East of England | £1,597 | +8% | | North West | £1,146 | +8% | | Yorkshire and The Humber | £1,022 | +8% | | South West | £1,425 | +7% | | East Midlands | £1,150 | +7% | | UK excl. London | £1,316 | +7% | | South East | £1,836 | +6% | | London | £2,652 | +4% | | Wales | £1,065 | +4% | ### **Addressing the Imbalance** Tim Bannister from Rightmove emphasises the need for strategic interventions to balance supply and demand. He advocates for streamlining the planning process, accelerating housebuilding, and providing incentives for landlords to increase the supply of rental properties. These measures are crucial for stabilising [rental price growth](https://blog.magnateassets.com/rental-prices-rise-again-in-the-uk-highlighting-demand-and-potential-for-investors) and ensuring a sustainable market. ### **Positive Outlook for Investors** For UK property investors, these trends present significant opportunities. The high demand and rising rental prices indicate a robust rental market, making property investment a lucrative venture. With Rightmove’s call for more rental properties, investors are well-positioned to benefit from the sustained demand and potential policy changes aimed at boosting supply. ### **Conclusion** The current state of the UK rental market reflects a dynamic environment with rising rents driven by a critical supply shortage. Investors can leverage this opportunity by [investing in rental properties](https://www.magnateassets.com/en/contact-us), contributing to the market’s growth, and reaping substantial returns. Stay informed with Magnate Assets for the latest market insights and investment opportunities Topics: [Insider](https://blog.magnateassets.com/tag/insider), [UK Property](https://blog.magnateassets.com/tag/uk-property), [Off-Plan Property](https://blog.magnateassets.com/tag/off-plan-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Market Trends](https://blog.magnateassets.com/tag/market-trends), [Rents](https://blog.magnateassets.com/tag/rents), [Mortgage](https://blog.magnateassets.com/tag/mortgage), [Investment Strategies](https://blog.magnateassets.com/tag/investment-strategies), [Overseas Investors](https://blog.magnateassets.com/tag/overseas-investors) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/uk-rental-market-hits-record-highs-amid-supply-shortage) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=UK%20Rental%20Market%20Hits%20Record%20Highs%20Amid%20Supply%20Shortage&url=https://blog.magnateassets.com/uk-rental-market-hits-record-highs-amid-supply-shortage&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/uk-rental-market-hits-record-highs-amid-supply-shortage) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[Insider, UK Property, Off-Plan Property, Real Estate Market, Market Trends, Rents, Mortgage, Investment Strategies, Overseas Investors\] - 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