Latest data shows growth in rents now higher than the rate of inflation
The HomeLet Rental Index shows that the rental growth recorded in February 2020 (1.6%) appears to be lower than the rate of inflation, recorded at 1.8% in the Consumer Prices Index (CPI) in January 2020.
The latest data also shows that rents in the North West however, are growing faster than any other region in the UK, rental growth in London has now decreased by over for the past three months. Rental values in the North East, North West, East Midlands, Scotland, Yorkshire & Humberside, Northern Ireland and Wales all rose at a rate faster than the UK average.
Average rents across the UK rose by 1.6% in February 2020 when compared to the same month a year previously; the average monthly rent is now £955
Rents in London increased by 3.2% in February 2020 than in the same month of 2019; the average rent in the capital now stands at £1,650 a month
When London is excluded, the average UK rental value was £791 in February 2020, this is up 1.2% on last year
HomeLet's February Rental Index reveals that rents rose from last year in 9 out of 12 of the regions covered in the research
In February, average rental values in London (£1,650) were 73% higher than the UK (£955)
When London is excluded the average rent in the UK was £791 in February, average rents in London (£1,650) were 109% higher than the rest of the UK
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.