After UK average rent hit the £1,000 mark for the first time on record in June 2021, it rose by a further 2.2% in July, to an average rent of £1,029 PCM.
This figure signifies a 6.6% year-on-year increase on the July 2020 average rental price of £965 PCM.
London has seen the second price rise in as many months after a year of decline, with an annual increase of 2.1% to £1,645 PCM.
Excluding London, the average UK rent price has increased 8.7% year-on-year to £878 PCM.
The highest annual price rise was seen in the South West of England, where rental prices rose 12.9% year-on-year to to £989 PCM.
Scotland’s average rental price for July was £751, up 8.5% from July 2020.
Wales saw an annual increase of 11.8%, to an average monthly rental price of £713.
In Northern Ireland, average prices were 4.5% higher than at the same time last year, at £704 PCM.
Andy Halstead, Group Chief Executive Officer gave the following comments on this month’s data:
As a group, we’ve seen exceptional growth, supporting over 5,000 professional letting agents across the UK. With data based on 1m tenant reference per year, the rental index provides the market with the most concise view of achieved rents.Andy Halstead, Group Chief Executive
The data shows the exceptional growth in rental values, particularly in areas that are within commutable distance to London. Throughout the pandemic, the rate of growth in some regions has more than doubled against previous years.
We see positive signs in the Capital, rents are now just 1.2% down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values. With restrictions easing, optimism is returning. The demand will steadily grow for the rest of the year.
The private rented sector is exceptionally resilient, and demand for property remains high. We’re seeing some of the needs across the country being met by the fast-growing Build-to-Rent sector. That’s a theme that will continue for the foreseeable future, as tenants look to benefit from the lifestyle the industry can provide with features like on-site amenities and concierge services.
We’ve supported thousands of agents who are dealing with rental arrears, the end of the furlough schemes will sadly mean that there are further job losses in certain markets, the lettings sector has mitigated some of that risk through rent protection.
THE LARGEST AND MOST RELIABLE SOURCE OF AVERAGE RENTAL DATA IN THE UK
The Rental Index data is qualified through high-quality tenant referencing, carried out on behalf of over 4,500 UK letting agents. As a group we reference over 1m tenants a year, enabling reporting on newly agreed tenancy applications, with historic data for over 13m tenancy applications.