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 demand see regional rent prices grow by 4% on last year

Excluding London, the UK average rent is now £854 per month, up 6.4% on this time last year

The average rent price is now £997, up 4% from last year

London rents decrease in annual variance for the 12th month in a row – now at an average of £1,583

11 Of the 12 regions showed an increase in annual variance – East Of England the largest rise at 8.5%

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

 

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, Andy Halstead, Group Chief Executive Officer said:

“We’ve seen from sharp house price spikes across the country that the Coronavirus pandemic changed what Britons are looking for in a property. Many said to be looking for properties offering more living space; for those working from home as an example, that’s also the case in the private rented sector.

“Rental properties continue to play a crucial role in meeting the demands of people up and down the country, and the flexibility and responsiveness shown by the private rental sector will be vital in the coming months as the country opens up again. As rents increase, we’ve also seen an increase of over 10% in suspicious and fraudulent applications for let property; with backlogs and delays in processing evictions, the demand for high-quality tenant reference and insurances has never been higher.

“The overwhelming success of the vaccination drive brings hope that returning to some form of normality could be on the horizon. However, we would still caution that millions could be made unemployed at the end of the furlough scheme – posing considerable problems in tandem with an unbalanced rental market. Whilst the Government looks to stimulate homeownership, the importance of the private rented sector can’t be understated and should not be overlooked.”

Andy Halstead, Group Chief Executive

The average rent in the UK is now £997, up by 4.0% on the same time last year and another record-high average price.

Every region bar London saw a rise in rent prices YOY – when excluding London, the average rent in the UK is now £854, up by 6.4% on last year

Rents in London continued to drop YOY to £1,583, down by 0.9% on last year, the twelfth decrease in annual variance in subsequent months.

East of England saw the most significant YOY price rise of 8.5% since this time last year.

Scotland saw the most significant MOM price rise, with the average price rising 2.6% to £707 a month in May.

Rent prices in East Midlands fall by 0.7% compared to last month – now at an average price of £704 per month.

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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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