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Rental Rates Reach New Heights, London Leads the Surge

Every region in the UK witnessed an increase in average rental prices for August 2023, according to recent data. London, in particular, saw a significant 1.7% hike, underscoring the city’s escalating living costs.

The figures, released by HomeLet in their latest Rental Index for August 2023, demonstrate the unabated rise in average UK rental prices:

  • The new UK average rental price stands at £1,261 per calendar month (PCM), marking a 1.4% rise from the previous month.
  • When London is excluded from the analysis, the average rent in the UK reaches £1,051 PCM, which also represents a 1.4% month-on-month increase.
  • Greater London has established a new benchmark with rental prices touching £2,145 PCM.
  • In contrast, the North-East, the region with the UK’s most affordable rental market, reported an average of £655 PCM, which is a substantial 3.0% jump from the prior month.

The HomeLet Rental Index is renowned for offering the most current and comprehensive data on the UK’s rental values. The data sourced for the Index is based on the rental values of recently agreed tenancies, providing a real-time snapshot of the lettings market across the nation.

“The average UK rental price hits another all-time high of £1,261 PCM, increasing a further 1.4% from last month. Excluding London, the average price of rent in the UK is £1,051 PCM, up 1.4% from last month. London prices continue to soar, up 1.7% to a new high of £2,145 PCM,” the report highlighted.

These statistics emphasise the need for stakeholders to closely monitor the housing and rental market to ensure it remains accessible for all UK residents.

Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, commented: “As summer 2023 prepares to bow out and temperatures drop, rental price records continue to soar across 50,000 new tenancies referenced by Homelet during August alone.

Average monthly rent reached £2,145 per month with London included, and outside of London, an incredible £1,051 per month, every single region is reporting a sizeable month-on-month increase. These figures, on top of the current cost of living, are jaw-dropping!

It isn’t just tenants who are feeling the financial strains of increasing rental prices. The exacerbating economic issues around rental prices are also leaving landlords with increasing rent arrears, resulting in struggles to make mortgage payments and other expenses.

It really is a vicious circle, with very few winners. We see no end to the madness, with rental supply coming under more pressure as landlords try and exit the market.”