"The story of the rental market continues to be one of high tenant demand but not enough available homes to meet that demand," said Rightmove's Tim Bannister. "Last year, we saw exceptional numbers of tenants looking to move and this year we have seen no let-up in this trend."
However, there is some good news on the horizon for Generation Rent. More rental properties are starting to come onto the market, which should stop private rents from rising – at least further down the line.
"While stock levels are beginning to improve, with June seeing the highest number of new rental listings coming to market so far this year, the wide gap that has been created between supply and demand over the last two years will take time to narrow," Rightmove's Tim Bannister said. "Until then, this imbalance will continue to support asking rent growth."
Last month also brought some mildly encouraging news for London renters: in some postcodes, room rates remain cheaper than pre-pandemic.
"Not every pocket of the London rental market has performed as well and tenants can still find some very good bargains when looking in the right place," says Ahmed Gamal, CEO and founder of lettings website Rentd. "But, given the wider performance of the market, it's unlikely these rental market bargains will be around for very long."