UK rents hit yet another peak: HomeLet

Posted on Friday, September 2, 2022

UK rents have hit a new record peak of £1,413 per month, according to the HomeLet Rental Index. 

The headlines from this month’s HomeLet Rental Index show that the average rent in the UK has reached £1,143 PCM, up 1.4% from last month. 

However, this figure includes London's rents, which have now risen to an average of £1,898 (up 1.6%): excluding London, the average rent in the UK is up 1.4% on last month at £961 PCM.

Scotland saw the largest monthly variance, with rents 2.5% higher than last month, up to £861 PCM

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.

“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.”

Via @PropertyReporter