HomeLet Rental Index: UK rent prices reach record levels yet again

HomeLet Rental Index: UK rent prices reach record levels yet again with landlords and tenants set for tough times.

Key points from publication:

The average rent in the UK reaches £1,143 PCM, up 4% from last month
When London is excluded, the average rent in the UK is now £961 PCM, up 4% from last month
Average rents in London continue to rise – rents in the capital have risen to a new average of £1,898 PCM – an increase of 6%
Scotland saw the largest monthly variance, with rents 5% higher than last month, up to £861 PCM

HomeLet has released the Rental Index figures from August 2022, with rising prices across the board, and a new record-high national figure of £1,143.

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:

“Costs of all kinds are rising, directly impacting landlords and their tenants. Factors like increasing mortgage interest rates, changes in taxation, and bills for improvements to meet new government energy efficiency standards are growing pressures on landlords.

“With high demand, tenants’ affordability constraints will start to be stretched. The value letting agents can provide to both tenants and landlords is only increasing in the current market. High-quality tenant checks and relevant insurance have become an essential considerations for landlords. We’ll do everything we can to support customers through this difficult period.

“We expect rental prices for new tenancies will continue to increase. It’s a challenging position for both landlords and tenants. Whilst landlords’ cost bases are being squeezed, tenants’ living costs are only getting worse.”