HomeLet Rental Index

The Rental Index represents the largest, most insightful and up-to-date view on the UK’s private rented sector.

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Huge rent demand and price rises continue across the UK

The average rent price in the UK reaches another record high of £1,061 PCM

Excluding London, the UK average is now £891 PCM

London sees the biggest month-on-month price rise in the country with a 2.3% jump in the last month, now up to £1,752 PCM

North East of England is by far the lowest in the country, at just £578 pcm

Further details and data tables can be found in the full report.

Download the .xlsx data file here.

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.

Commenting on the latest data, Matthew Carter, Head of Marketing, said:

“UK rents are up by 9.7% on pre-pandemic levels (2019), but most of the increases have happened this year. At first, we saw rents outside London surge whilst prices in the capital dipped, but we’re now seeing rents in London rise much more rapidly, fueling the record rental levels we see across the country.

“Typically, rental prices rise in line with inflation and wage growth; that’s something we’ve continued to see. Despite record rents, tenants moving home spend a similar percentage of their income on their monthly rent. In September, the average household spent 29.6% of their gross income on rent, compared with 30.9% in September 2019, before the pandemic.

“Housing follows the same fundamental laws of economics as other goods that consumers need. Ultimately demand, coupled with lower stock levels for certain types of property, are driving up rental values. The concern is that we’re at a point where there are some areas with exceptionally high demand.

“Landlords and the lettings market have faced a continued raft of changes and legislation; the Government needs to carefully consider how any future policy might impact the 4.5 million households in the private rented sector. The Governments push on homeownership shouldn’t be done to the detriment of an industry that plays a critical role in UK housing.”

 

Matthew Carter, Head of Marketing

The average rent in the UK has hit another record high of £1,061, up 7.5% on the same time last year, and up 0.8% from the previous month’s figures.

London continues to march towards normality, with another price rise. An annual increase of 6.4% has taken the average price to £1,752 PCM; the monthly jump of 2.3% is the biggest in the country.

Excluding London, the average UK rent price is up to £891 PCM, up 7.6% YOY.

The South West of England has seen a significant monthly drop in rent price, with the average rent now at £971, down 3.5% compared to last month.

Elsewhere, every single region has seen a YOY price rise, with Wales (12.9% rise) and Scotland (10.8%) seeing the most significant annual increases.

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Methodology

The HomeLet Rental Index incorporates a methodology designed in conjunction with a professor at the London School of Economics. The methodology factors in important elements, such as property type and geography, to create mix adjusted averages. This makes Britain’s most comprehensive rental market benchmark even more insightful. The methodology has been applied retrospectively to our historical rental market data to ensure that the Rental Index can continue to be used to provide analysis of trends in the private rental sector.

The index and average prices are produced using HomeLet’s mix adjusted rental index methodology. This helps to track the representative rental values over time, which factor in changes in the mix of property types and locations of rented properties.

Data is gathered from our tenant referencing service, and our rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs. The data used in the HomeLet Rental Index is aggregated to regional, county and city level only. This ensures that all property or individual records remain strictly anonymous.

The HomeLet Rental Index is prepared from information that we consider is collated with careful attention, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue this report. The HomeLet Rental Index may not be used for commercial purposes; we shall not be liable for any decisions made or action taken in reliance upon the published data.

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