HomeLet Rental Index: Rise in rent prices coincides with continued cost-of-living hike

HomeLet Rental Index: Yet another rise in rent prices coincides with continued cost-of-living hike around the UK.

HomeLet has released The Rental Index figures from October 2022, with rising rent prices amid the cost-of-living hike that has hit the UK.

The headlines from this month’s report are:

- The average rent in the UK reaches £1,171 PCM, up 0% from last month
- When London is excluded, the average rent in the UK is now £976 PCM, up 5% from last month
- Average rents in London saw a significant rise – rents in the capital have risen to a new average of £1,989 PCM – an increase of 3% and creeping towards an average of £2,000 PCM.
- The North-East also saw the largest monthly variance, with rents 3% higher than last month, up to £623 PCM

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 data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said:

“A lot has happened in the past few weeks with (another) new Prime Minister appointed, but away from the chaotic scenes on Downing Street, things are much more predictable in the rental market, with prices continuing to rise monthly.

“The average rental price in Greater London is creeping towards the £2,000 PCM mark, and the cheapest rental region of the UK, the North-East, also saw a big month-on-month jump in the average rental price. That said, we have seen a slight slowing down in the rate of price rise in most other regions of the country.

“Our message has remained consistent, that the continued trend of landlords leaving the market is likely to see prices continue to rise, with a lack of properties to meet demand bound to result in a more competitive race to secure a let for the average tenant.

“The rising cost of living has to be a concern for both tenants and landlords too. Any trend that sees more tenants unable to pay their rent spells bad news for everyone involved, increasing the importance of letting agent support for landlords.”