HomeLet Rental Index: UK average over £1000 per month for second month in a row

UK average rent price is over £1000 per calendar month for the second month in a row, according to the latest publication of the HomeLet Rental Index.

Key findings:

Excluding London, the UK average is now £878, up 9% from last year
London rents increased for the second month in a row after a year of decline, now up to £1,645 pcm
All 12 regions have seen both monthly and yearly prices increases
The south west shows the largest monthly increase, up 4.3% to £989 pcm
You can find further details and data tables here

HomeLet has released the Rental Index figures for July 2021, with every single region of the UK showing both an annual and monthly price increase.

The headlines from this month’s report are:

The average rent in the UK is now at a record high of £1,029, up 6.6% on the same time last year, and up 2.2% from the previous month’s figures.
London sees the second price increase in as many months after a year of decline, with an annual variance increase of 1% to £1,645 PCM.
Excluding London, the average UK rent price is 8.7% higher than last year, up to £878
The South West of England saw the highest annual price rise, with the current average price of £989 PCM marking a 9% increase on this time last year, and a 4.3% rise from last month’s data.
Elsewhere, rent prices in the North East rose by 1.1% compared to last month to an average of £553 PCM, which is an annual increase of 3.4%.

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:

“As a group, we’ve seen exceptional growth, supporting over 5,000 professional letting agents across the UK. With data based on 1m tenant references per year, The Rental Index provides the market with the most concise view of achieved rents.

“The data shows the exceptional growth in rental values, particularly in areas that are within commutable distance to London. Throughout the pandemic, the rate of growth in some regions has more than doubled against previous years.

“We see positive signs in the Capital, rents are now just 1.2% down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values. With restrictions easing, optimism is returning. The demand will steadily grow for the rest of the year.  

“The private rented sector is exceptionally resilient, and demand for property remains high as we see the fast-growing Build-to-Rent industry meeting some of these needs across the country. That’s a theme that will continue for the foreseeable future, as tenants look to benefit from the lifestyle the industry can provide with features like on-site amenities and concierge services.

“We’ve supported thousands of agents who are dealing with rental arrears, and the end of the furlough schemes will sadly mean that there are further job losses in certain markets; the lettings sector has mitigated some of that risk through rent protection.”

Table: High-Level Rental Index Summary for July 2021