HomeLet Rental Index
For January 2024, the data shows that the average rental price for a new tenancy in the UK was £1,268.
Average UK rent
The average rent in the UK is now at £1,260, up 7.5% on the same time last year but down by 0.6% from last month’s figures.
Average UK rent (excluding London)
Excluding London, the average UK rent price is 7.5% higher than last year up to £1,059 PCM, but is down by 0.2% compared to December 2023.
London's average monthly price
London’s average monthly price has decreased by 2.2% from last month to £2,081 PCM, but still 4.6% higher than in January 2023.
The cheapest region in England, the North East, saw a price decrease since December 2023 figures by -0.3% to £655.
Average rent in Wales
Average rents in Wales decreased to £856 PCM, 1.2% less than last month but 6.47% higher than January 2023.
Largest MoM increase
The East Midlands and South West saw the highest monthly increase of 0.7% from December 2023.
The largest and most reliable source of average rental index data in the UK
The Rental Index data is qualified through high-quality tenant referencing, carried out on behalf of over 4,500 UK letting agents. As a group we reference over 1m tenants a year, enabling reporting on newly agreed tenancy applications, with historic data for over 13m tenancy applications.
Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said:
“The Spring Budget approaches, and it will be interesting to see what the Conservative party announces to support landlords and tenants - if anything at all. Recent news suggests the likelihood of policies designed to curry favour with voters ahead of the election later this year. But we believe rebuilding the housing industry after the financial battering it has undergone in recent years should be a major priority.”
“Though we can absolutely be positive about the short-term gains we have reported this month, it’s not time to celebrate just yet. By all means, view this month’s figures with optimism, but we need to take it with a massive pinch of salt and hope that the declines remain steady.”
“Of course, marginally lower rents put slightly more money in tenants’ pockets and partially reduce the likelihood of defaults, but the broader landscape is still incredibly challenging for all parties - with little sign of easing. In fact, following last year’s trajectory, it is entirely possible that rents could be 5% - 10% higher by this time next year.”
“Unless we see some dramatic changes to the economy, 2024 looks set to bring more of the same. Landlords will have to do battle with a familiar array of struggles, including rising costs and prohibitively expensive buy-to-let mortgage rates. Can the government turn it around? Only time will tell.”
Andy Halstead | HomeLet & Let Alliance Chief Executive Officer
Rental figures from the January 2024 HomeLet Rental Index
The table below provides a regional breakdown of the latest average rental values in the UK.