Rents rise again as rental market shows ‘no signs of slowing down’

Posted on Tuesday, June 6, 2023

UK rental prices have increased again, with London recording the highest-ever monthly average, new data shows.

According to HomeLet, the average UK rental price in May stood at £1,213 per calendar month (pcm), up 1.2% from April.

London rents are risen even further with the average rental price in the capital hitting £2,039pcm.

Excluding London, the average price of rent in the UK now stands at £1,016pcm, an increase of 1% month-on-month.

Scotland saw the highest monthly increase with rental averages rising by 2.6% month-on-month.

In contrast, the UK’S cheapest rental area, the North East, saw rents drop by an average of 2% from a month earlier, hitting an average of £632pcm.

Andy Halstead,?HomeLet?& Let Alliance CEO, said: “Rental prices remain high, which brings a level of risk for both tenants and landlords. We are again urging landlords to consider Rent Guarantee insurance as the likelihood of tenants struggling to pay their rent grows with each passing month.

“The London rental market in particular shows no signs of slowing down – there have only been a handful of occasions on which the monthly average has been recorded above £2,000 PCM, with this month’s average of £2,039pcm going down as the highest ever recorded.

“The fact that the London market is rising in terms of average price while the cheapest area in the country [North-East of England] is falling shows that the level of demand somewhat depends on location, but as a broad rule, there is a shortage of rental properties to meet demand, with many prospective tenants facing a real battle to secure a property. This frenzied market is likely to see prices continue to rise in the coming months.”

Via @PropertyIndustryEye