HomeLet Rental Index: Average UK rent rises to record £1,113 p.c.m.

HomeLet has released its Rental Index figures from June 2022, showing that average UK rent rises to record £1,113 p.c.m.

Key points from publication:

The average rent in the UK reaches £1,113 p.c.m., up 9% from last month
When London is excluded, the average rent in the UK is now £936 p.c.m., up 9% from last month
Average rents in London have risen again. Rents in the capital have risen to a new average of £1,846 p.c.m.– an increase of 8%
Scotland saw the largest monthly variance, with rents 3% higher than last month.

The HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.

The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK.

Commenting on the latest findings, Rob Wishart, Head of Business Intelligence, said:

“The impacts of inflation, the war in Ukraine, energy price and other cost increases, are all combining to squeeze households up and down the country. This month’s rental figures also show a rise, and it is relatively easy to surmise that all of the issues above will lead to an increased number of tenants unable to pay their rent, which is a bad thing for everyone.

“As we have mentioned many times in the Rental Index, there is a shortage of housing stock in this country, and this is a phenomenon that is only getting worse as many landlords are deciding that they would prefer to leave the market altogether. If we continue to see a decline in the number of landlords, tenants are likely to pay the price, as a shortage of supply will see an increase in demand, making further price rises inevitable.

“A recent survey from Homelet has revealed that four out of five renters (78%) are worried about how they will pay their rent, and in the same survey, landlords named renters’ ability to pay rent as their number one concern. It is easy to see where the problems lie, and it is hard to see how the Renter’s Reform Bill will help address the issue.”