HomeLet Rental Index

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

Home / Market Insights

UK AVERAGE RENT REMAINS HIGH, UP 8.7% ON THIS TIME LAST YEAR

The average rent price in the UK for October 2021 is £1,059

Excluding London, the UK average is now £888 PCM

Wales sees the most significant year-on-year price rise in the UK with a 12.9% jump in the last year, now up to £742 PCM

North East of England is the cheapest area to rent in the UK, at just £588 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, Chris Turner, Head of Business Development, said:

“In normal market conditions, we might see spikes in rental values for desirable or emerging areas, but we’re still seeing a really high demand for all property in the lettings market; that’s now the case in most parts of the UK. With fewer new properties coming up to rent when compared to pre-pandemic levels, we can expect the trends we see continuing throughout 2022.”

“There was no specific mention of lettings or the private rented sector in the Budget, which might come as a welcome relief to many landlords, especially given the raft of changes that have impacted them in the past few years. The private rented sector provides a home to millions of people across the country. Our view is that the Government should give as much consideration to supporting this vital sector as it does to homeownership.

“The Chancellor announced a £65 Million Support Package for Vulnerable Renters, which will be welcome news for some. As the UK’s largest provider, we’ve dealt with an unprecedented rise in the volume of claims on Rent Protection insurance throughout the pandemic. With factors like the ban on evictions, we’ve also seen a record increase in the number of deferrals and payment plans put in place, with an exceptional level of compassion from landlords and letting agents for the circumstances many tenants have faced. Whilst there’s a focus on the pandemic impacting tenants, it has also significantly impacted many landlords without protection, both financially and emotionally.”

Chris Turner, Head of Business Development

After rising for 10 months in a row, the average rent in the UK has dropped by 2% since last month, to £1,059 PCM.

London continues to march towards normality, with another price rise. An annual increase of 9.7% has taken the average price to £1,759 PCM.

Excluding London, the average UK rent price is £888 PCM, up 8.2% YOY.

Northern Ireland has seen the largest MOM increase, with rental prices rising by 3.2% since September 2021, to £729 PCM.

Scotland has seen a significant monthly drop in rental prices, with the average rent now at £738, down 2.3% compared to last month.

Elsewhere, every single region has seen a YOY price rise, with Wales (12.9% rise) and Northern Ireland (11.6%) seeing the most significant annual increases.

Catch-up with the latest industry news from HomeLet

View all of the latest news, views and tips from HomeLet to stay up to date with the rental industry

 

 

HomeLet Content Insurance

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.

  placeholder-form

Are you ready to maximise the value of every let?

Just provide us with a few details below and we’ll be in touch quickly to demonstrate how simple it is to increase your revenue.

Alternatively, you can call us on 0330 333 7124

Our office hours are 09:00-17:30 Mon – Thurs and 09:00-17:00 Friday.

reCAPTCHA is required.