The upward trend in UK rental prices shows no sign of abating, with an increase witnessed across all regions in July, including the traditionally cheaper North-East.

Current data reveals that the mean UK rental price now sits at a record-breaking £1,243 per calendar month (PCM), a 1.1% rise from the previous month. Removing London from the equation, the UK’s average rental cost is £1,037 PCM, marking a 1% surge. Meanwhile, Scotland has achieved its loftiest rental average to date, standing at £973 PCM. Even the North-East, known for the lowest rents in the UK, exhibited a 1.8% increase from last month to £636 PCM.

These figures are sourced from the Rental Index provided by HomeLet in July, indicating a continued rise in the UK’s rental costs, encompassing even the most cost-effective regions. The HomeLet Rental Index offers the most thorough and updated insights into the UK’s rental values, documenting the exact rental costs agreed upon in newly established tenancies during the most recent period. This provides an extensive understanding of the current lettings market across the UK.

Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, weighed in on the concerning trends. He remarked, “July’s average rental price reaching an unprecedented £1,243, coupled with a nationwide rise in prices, poses a predicament for both tenants and landlords.

“The rental market is inching closer to a scenario where many potential renters will be unable to afford living costs, posing a grave risk.

“Moreover, the landlords are not sitting pretty either. Sky-high rental rates do not directly translate into increased profits for them. The unpredictability of rental income is detrimental for landlords, making rent guarantee insurance a vital safety net during these trying times.

“The North-East, which has been somewhat insulated from frequent price hikes in recent months, has also seen a 1.8% rise to £636 PCM in July 2023. The nationwide surge in rental and mortgage rates is an alarming sign that no one seems to be benefiting – the question remains, when will this spiral cease?

“In the capital, an average rental price exceeding £2,000 PCM, a threshold crossed less than a year ago, seems to have become the new normal. Now peaking at £2,109 PCM, the erratic London rental market reflects the broader UK situation and shows no signs of deceleration. The frenzy persists!”