UK average rent over £1,000 per month for the first time on record

UK average rent over £1,000 per month for the first time on record, with the average rent price in the UK now £1,007, up 5.9% year on year, according to the Homelet Rental Index.

Key points:

Excluding London, the UK average is now £861, up 8% from last year
London price in decline for over a year, yet finally shoots of recovery with an increase, now up to £1,607 per month
All regions except London have seen increases compared to pre-covid rental prices
all 12 regions show a year-on-year increase
Scotland shows largest monthly increase, up 4.4% to £738 per month
You can find further details and data tables  here

The HomeLet Rental Iindex figures for June 2021 have now been released, with every single region of the UK showing an annual price increase.

The headlines from this month’s report are:

The average rent in the UK is now at a record high of £1,007, up 5.9% on the same time last year, and up a massive 7% on this time two years ago.
London sees the first price increase for over a year, with an annual variance increase of 1.5% to £1,607 PCM. However, the price is still lower than pre-COVID, as the average was £1,611 PCM back in June 2019.
Excluding London, the average UK rent price is 8% higher than last year, up to £861 PCM, showing a 10% growth on pre-Covid prices.
The South West of England saw the highest annual price rise, with the current average price of £948 PCMmarking a 5% increase on this time last year, and a 12.6% increase on pre-Covid levels.
Scotland saw the most significant MOM price rise, with the average price rising 4% to £738 PCMin June.
Elsewhere, rent prices in the North East fell by 2.3% compared to last month to an average of £547 PCM, one of only two regions to see a MOM price dip.

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: 

“Throughout the Coronavirus pandemic, the Government rightly took measures to protect tenants but didn’t go far enough to balance the protection for landlords. It’s a continuation of the theme that we’ve seen for many years, with landlords being penalised by higher taxes and increased complexity in obtaining possession of their properties.

“In simple terms, increased costs for landlords mean increased costs for tenants. Some landlords have exited the market whilst the stamp duty holiday has stimulated the sales market, impacting the stock level. These are all factors driving an increase in rental values for new tenancies, which are way above the rate of inflation.

“The private rented sector plays a critical role in the UK’s housing market. As restrictions begin to ease, the flexibility provided by rentals will be crucial to mobility across the UK and as a means to access affordable housing that fits the varying needs of a diverse range of tenants.

“The sector works best when there’s a mutual balance between tenants, landlords and letting agents. The Government can’t treat the rental market as an afterthought. Policies that solely focuses on homeownership will only deepen the issues in the UK’s housing market.

“Some people might be shocked to see the average UK rental price tip over the £1000 mark, yet supply and demand dynamics will only continue to drive rental prices upwards for the rest of the year, and we’ll see more records broken in 2021.”

Commenting specifically on London, Halstead said:

“The impact of Brexit on international tenants has been exacerbated by the pandemic, noticeably in London. Positively, this month we can see the demand for rental properties in London growing, not only through the increase in rents but also the volume of new lets that we’ve seen in the Capital.

“After a year where demand and rental values have dipped, we can expect to see growth again as the impact of the pandemic gradually subsides.”

Table: Final Rental figures from the June 2021 HomeLet Rental Index

Region	June 2021	May 2021	June 2020	Monthly Var	Annual Var
South West	£948	£943	%858	0.5%	10.5%
Wales	£702	£698	£636	0.6%	10.4%
East of England	£1,005	£1,001	£917	0.4%	9.6%
South East	£1,105	£1,095	£1,022	0.9%	8.1%
East Midlands	£704	£704	£651	0.0%	8.1%
Scotland	£738	£707	£692	4.4%	6.6%
Yorkshire & Humberside	£701	£697	£658	0.6%	6.5%
Northern Ireland	£699	£678	£659	3.1%	6.1%
West Midlands	£754	£755	£714	-0.1%	5.6%
North West	£799	£790	£758	1.1%	5.4%
North East	£547	£560	£525	-2.3%	4.2%
Greater London	£1,607	£1,583	£1.583	1.5%	1.5%

Table: Final Rental figures from the June 2021 HomeLet Rental Index compared to pre-COVID figures

Region	Jun-19	Jun-20	Jun-21	Variation between 2021 and 2020	Variation between 2021 and 2019
South West	£842	£858	£948	10.5%	12.6%
North West	£711	£758	£799	5.4%	12.4%
Wales	£625	£636	£702	10.4%	12.3%
East Midlands	£635	£651	£704	8.1%	10.9%
Yorkshire and Humberside	£634	£658	£701	6.5%	10.6%
Scotland	£671	£692	£738	6.6%	10.0%
East Of England	£917	£917	£1,005	9.6%	9.6%
West Midlands	£695	£714	£754	5.6%	8.5%
South East	£1,035	£1,022	£1,105	8.1%	6.8%
Northern Ireland	£671	£659	£699	6.1%	4.2%
North East	£530	£525	£547	4.2%	3.2%
Greater London	£1,611	£1,583	£1,607	1.5%	-0.2%
UK Excluding Greater London	£781	£797	£861	8.0%	10.2%
UK	£941	£951	£1,007	5.9%	7.0%