A new analysis has revealed that the actual cost of renting is often significantly lower than the advertised prices, providing tenants with better deals than they might expect. The research suggests that many renters are successfully negotiating lower rents or securing properties at a reduced rate compared to the initial asking price.
The study, conducted by Goodlord, compared the rental prices listed on Rightmove with the final agreed-upon rental costs recorded by Goodlord itself. This comparison provided insight into how much tenants are actually paying versus what landlords are initially asking for.
The findings show that, during the last quarter of 2024, tenants renting outside of London were able to secure properties for up to 20% less than the advertised rental prices. This suggests that landlords may be adjusting expectations in response to market conditions or that tenants are becoming more proactive in negotiating favourable deals.
For those renting in London, the difference was even more pronounced, with final rental costs coming in approximately 24% lower than the originally advertised rates. This indicates that rental affordability remains a significant concern in the capital, and landlords may be offering discounts to secure tenancies more quickly in a competitive market.
Overall, this trend highlights a shift in the rental sector towards greater flexibility in pricing. As rental demand fluctuates, tenants are increasingly leveraging market conditions to negotiate lower rents, potentially easing financial pressures for those looking to secure a home in the UK.
Advertised rental prices in the final quarter of 2024 showed a significant gap between listed rates and the actual prices tenants agreed to pay. According to Rightmove, the average advertised rent was £1,341 per month outside of London, while in the capital, it stood at £2,695 per month.
However, Goodlord’s rental tracker revealed a different reality. The average confirmed rent for tenancies signed during the same period was notably lower, with tenants outside of London paying £1,070 per month on average—20% less than the advertised price. In London, the difference was even greater, with final rental prices averaging £2,046 per month, which is 24% below the original asking price.
These figures suggest that landlords may be initially listing properties at higher rates, but tenants are successfully negotiating lower rents. This trend indicates a more flexible rental market where renters have some leverage to secure better deals.
Despite these lower-than-advertised rents, rental costs have continued to climb. On a month-by-month basis, average rents across England increased from £1,185 in December to £1,207 in January—an almost 2% rise.
Notably, this marks the fifth consecutive year that rents have increased between December and January, reinforcing a seasonal pattern in the rental market where demand pushes prices up at the start of the new year.
Rental prices continue to be highest in London, where the average confirmed rent has risen to £2,044 per month, marking a 3% increase since December. In contrast, the North East remains the most affordable region, with average rents at £911 per month—up 5% from the previous month.
The South East was the only region to experience a slight decline in rental prices, with a 0.6% decrease in January. This suggests a potential shift in demand in that area compared to other regions where rents have continued to rise.
Despite the overall increase in rental costs, the average void period—the time a property remains vacant between tenancies—also grew in January. Voids extended from 21 days in December to 24 days in January, indicating a slight cooling in tenant demand. January typically sees longer void periods due to seasonal market slowdowns, but this marks the longest recorded void period since April 2021, making it the highest in almost four years.
The West Midlands saw the most significant increase in void periods, rising from 18 days to 23—an increase of 28%. This could suggest a temporary slowdown in tenant demand in the region.
Interestingly, the South East was the only region where void periods remained unchanged at 22 days. Coincidentally, it was also the only region to see a decline in rental prices, highlighting a potential correlation between stable void periods and rental price adjustments.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property