UK-wide rents increasing at modest rate, despite regional variations, data shows

HomeLet’s Rental Index figures for August 2018 have been released.

The headlines from this month’s report are:

  • The average rent in the UK is now £947, up 0.9 per cent on last year
  • When London is excluded, the average rent in the UK is now £786, up by 1.3 per cent on last year
  • Average rents in London are now £1,632, up by 1.4 per cent on last year and up 1.1 per cent on July 2018, when the average rental price broke £1,600 for the first time
  • The region with the largest year-on-year increase is Scotland, showing a 5.6 per cent increase between August 2017 and August 2018
  • The region with the largest month-on-month increase is also Scotland, showing a two per cent increase between July and August 2018
  • While this month has seen rents rise in all 12 of the regions monitored by HomeLet, the North East, South West, Wales and the East of England have seen a decrease in the rental prices from the same time last year

Commenting on this month’s data, Martin Totty, chief executive at HomeLet, said:

“In contrast to house prices, which show more noticeable cyclical variations over time, especially in areas of the country where the imbalance between demand and supply is more pronounced, UK-wide rents in August increased around one per cent compared with both the prior month and the same month last year.

“Our data demonstrates that the rental sector is showing a return to the long-term trend of steady, often below-inflation price growth. This makes the private rental sector an attractive alternative to the risk of entering, or exiting, property ownership at the wrong point of the cycle for tenants, landlords and lenders.”

As the UK’s largest tenant referencing firm, HomeLet reference 500,000 tenants every year. 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 brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.

Attached to this email is the full report which includes;

  • Average rental values in the UK
  • UK regional breakdown
  • Household rent to income ratio in the UK
  • Annual variance in average rental values by region
  • Greater London vs. the UK
  • Greater London ranked by borough

Head to www.homelet.co.uk/homelet-rental-index for more information.