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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AVERAGE UK RENT PRICE RISES TO NEW RECORD HIGH OF £1,127 PCM

The average rent price in the UK for July 2022 is £1,127

Excluding London, the UK average is now £948 PCM

Every region in the UK has seen annual and monthly growth.

Greater London has seen the highest annual growth (13.6%), with an average rental price of £1,868 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, Andy Halstead, HomeLet & Let Alliance CEO, said:

“This month’s figures paint a picture of a rental market that is struggling to meet the needs of renters or landlords, with spiralling prices a bad sign for both parties.

“One of the main factors leading to rising rent prices is a lack of supply on the market to match demand. This problem could worsen if landlords continue to leave the market, leaving a rapidly shrinking supply of available rental properties. The issue is reflected by the overall findings from our recent Landlord Survey, where 18% of all landlords that we spoke to said that they expect to reduce their portfolio or leave the sector entirely in the near future – this figure rises higher to 22% for landlords based in London.

“The same survey revealed that four out of five renters (78%) are worried about how they will pay their rent. A market too volatile for landlords to rely on receiving rents due, and properties too expensive for renters to cope with, is clearly unsustainable.”

Andy Halstead, HomeLet & Let Alliance CEO

The average rent in the UK is now £1,127, up 1.3% from last month’s price.

Average rents in London were £1,868, a 1.2% increase in price from June's average.

Excluding London, the average UK rent price is £948 PCM, up 8.0% YOY.

Rental prices in Northern Ireland have risen 2.9% since June, to £776 PCM.

The North East is the cheapest area to rent in the UK, with the average rent now at £591, up 0.5% compared to last month.

Elsewhere, every single region has seen a YOY price rise, with London(13.6% rise) and Scotland(11.9%) 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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