Asking rents hit new record says Rightmove. Is now the time to buy?

Is now the time to buy?

Latest data from Rightmove says average asking rents for new tenants outside of London reached another new record this quarter of £1,231 per calendar month (pcm). The average asking rent for a typical home outside of London is now a third (33%) higher than at this time in pre-pandemic 2019, increasing by more than £300 from £923 pcm. As rentals get more expensive, tenants could do well to compare the monthly cost of their mortgage to their rent. Once a mortgage rate is fixed, the mortgage does not increase until the mortgage deals ends, unlike renting where the rent could increase every year.

Rightmove added that average asking rents for new tenants outside of London rose by just £71 (8%) in the four years previous between 2015 & 2019, highlighting the rapid increase in new asking rents as tenant demand has increased and the number of properties available to rent has been steadily squeezed since the pandemic. Although the yearly pace of rent increases for new tenants continues to slow marginally, it remains near double-digit levels.

It’s a similar story in the capital, with average asking rents in London reaching a new record of £2,567, and while the pace of rent growth has slowed slightly, it remains in double-digits for the seventh consecutive quarter. London rents are now 28% higher (+£559 pcm) than at this time in 2019. Many renters think they cannot afford a mortgage if they haven’t saved enough deposit, however, there are still mortgages available if you have saved a deposit starting at five percent of the purchase price. Check out our First Time Buyers Mortgage Calculator here then book a 30-minute call with one of our expert advisers who can discuss your options. You may find your mortgage is less than your rent, depending on where you decide to live. Now that’s something to think about!