Property rental company HomeLet’s May 2023 Rental Index figures reveal an ongoing surge in the UK’s average rental prices. The report also draws attention to a record-breaking increase in London’s average monthly rent, further emphasizing the diverging rental patterns across the country.
The latest data shows the average UK rental price now stands at £1,213 per calendar month (PCM), marking a 1.2% increase from the previous month. When London, with its higher rental prices, is taken out of the equation, the UK’s average rent is £1,016 PCM, a 1% rise from the preceding month and a 9.5% increase compared to the same time last year.
Scotland witnessed the steepest monthly increase in rental averages among the UK regions, with a significant 2.6% growth. Contrarily, the North-East, known for having the most affordable rents in the UK, experienced a 2.0% month-on-month decrease, bringing the average rental price down to £632 PCM.
HomeLet’s Rental Index is recognised for offering detailed and timely data on rental values across the UK. The index’s insights stem from data on rental values for recently agreed tenancies, offering an accurate snapshot of the current state of the UK lettings market.
Andy Halstead, Chief Executive Officer of HomeLet & Let Alliance, expressed his concerns regarding the new data. He stated, “Rental prices remain high, which brings a level of risk for both tenants and landlords. We are again urging landlords to consider Rent Guarantee insurance as the likelihood of tenants struggling to pay their rent grows with each passing month.”
London’s rental market saw an exceptional increase, with the average rental price reaching an all-time high of £2,039 PCM. Halstead commented on this extraordinary rise, saying, “The London rental market in particular shows no signs of slowing down – there have only been a handful of occasions on which the monthly average has been recorded above £2,000 PCM, with this month’s average going down as the highest ever recorded.”
He also pointed out the striking contrast between the rising market in London and the falling prices in the North-East, the cheapest rental area in the UK. He indicated that while location plays a role in determining demand, there is an overall shortage of rental properties to meet demand.
Halstead concluded, “Many prospective tenants are facing a real battle to secure a property. This frenzied market is likely to see prices continue to rise in the coming months.”
