HomeLet Rental Index

What is the average rental value in the UK?

For February 2021 the data shows that the average rental price for a new tenancy in the UK was £984 per calendar month (pcm), which is up by 3% on last year.

Latest Rental Index data: February 2021

  • The average rent in the UK is now £984, up by 0.3% from last month, and up 3% on last year.

  • When London is excluded, the average rent in the UK is now £840 which is up 0.1% on last month and 6.2% on last year.

  • Ten of the Twelve regions showed an increase in annual variance, with the largest, as last month, being the East Midlands at 8.1%.

  • The South West shows the highest yearly increase of 8% between January 2020 and January 2021.

  • Average rents in London are down YOY, showing a 4.7% fall between February 2020 and February 2021; this is the ninth decrease in annual variance in subsequent months.

  • However, the average rental value in London (£1,572) was still 87.1% higher than the rest of the UK excluding London (£839).

>About our methodology   >Media & data enquiries   >Data table


Data Enhancements

The HomeLet Rental Index now includes data from both HomeLet and Let Alliance. The Rental Index is now based on around 1 million references processed each year on behalf of UK Letting Agents, the Rental Index represents the largest, most insightful and up-to-date view on the UK’s private rented sector.


Commenting on this month’s data, Andy Halstead, chief executive at HomeLet & Let Alliance, said:

Commenting on the data, Andy Halstead HomeLet and Let Alliance CEO said: “Those in the lettings sector warned of the Tenants Fees Act’s unintended consequences, along with the impact of the continued assault on landlords through policies that disincentives property investment. We’ve seen the volume of UK landlords dip, whilst supply from tenants has continued to grow. Landlords have to charge more to cover their essential costs, including professional letting agents’ valued services. Ultimately this pushes increased rents back on to tenants, the same group who supposedly should have benefited from legislation like the Tenants Fees Act.”  

“The situation with COVID is only making this trend much more pronounced. We have high demand areas where stock levels have remained flat or even declined because tenants want to rent for longer and fewer landlords are investing in property.

Property owners are facing increased risks

“Landlords face the genuine prospect that rent arrears will increase whilst the time to obtain vacant possession is climbing. As the UK’s National Rent Protection Scheme provider, we’ve seen an exceptional demand for our insurances that cover missed rental payments and legal costs.

“We only provide cover through professional letting agents, with the economic outlook so uncertain for many tenants; I’d strongly urge any landlords to consider their insurance needs and contact their managing agent before it’s too late.”

Commenting on the impact of Government policy on the sector, Andy continued: “With almost 1 in 5 people living in the private rented sector, it plays a critical role in the UK’s housing supply chain. Tenants should have the ability to rent a property at a reasonable price, whilst landlords and letting agents shouldn’t have to live in fear of future Government policy. The continual raft of legislation seemingly favouring tenants or only pushing homeownership to capture the popular vote needs to stop. The Government needs to listen to the lettings industry’s experience; landlords and letting agents want good tenants with a fair balance between all parties’ rights.”


Rental figures from the February 2021 HomeLet Rental Index

The table below provides a regional breakdown of the latest average rental values in the UK. 

Rental figures from the February 2021 HomeLet Rental Index 

Region

Feb-21

Feb-20

Annual Variation

Jan-21

Monthly Variation

East Midlands

£704

£651

8.1%

£698

0.9%

South West

£914

£849

7.7%

£919

-0.5%

East Of England

£978

£916

6.8%

£979

-0.1%

South East

£1,087

£1,018

6.8%

£1,094

-0.6%

West Midlands

£749

£708

5.8%

£741

1.1%

Yorkshire & Humberside

£680

£645

5.4%

£680

0.0%

North East

£542

£517

4.8%

£540

0.4%

North West

£782

£755

3.6%

£775

0.9%

Wales

£673

£650

3.5%

£675

-0.3%

Scotland

£678

£672

0.9%

£683

-0.7%

Northern Ireland

£662

£669

-1.0%

£648

2.2%

Greater London

£1,572

£1,650

-4.7%

£1,563

0.6%

UK

£984

£953

3.0%

£981

0.3%

The UK excluding Greater London

£840

£793

6.2%

£839

0.1%

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Landlord market survey

Our survey of UK landlords received over 2,900 responses and provides a detailed insight on landlords views and experiences of the private rented sector. Landlords, including customers of our landlords insurance services, were asked for their views on the UK’s rental market and their expectations for the year ahead.    

The next landlords survey will be published in 2021, sign up to receive the latest data.

View the survey results    


Tenant market survey

We surveyed tenants for their views on the private rented sector to better understand their experiences. The survey, conducted in January, received 20,388 responses. Tenants were asked for their views on the UK’s rental market, their experiences with their landlord/letting agent and their preferences when renting property. This included whether they plan to intend to rent in the future.

How long do you intend to continue renting?

How long intend to rent image

View the full survey results 


Regional data 

You can use our interactive graphs to view the change in rental values over the past two years for each of the reported regions of the UK. 

Scotland Northern Ireland North East North West Yorkshire & Humberside

East Midlands West Midlands Wales East of England London South East

 South West


Methodology

The HomeLet Rental Index incorporates a methodology designed in conjunction with a professor at the London School of Economics. The methodology factors in important elements, such as property type and geography, to create mix adjusted averages. This makes Britain’s most comprehensive rental market benchmark even more insightful. The methodology has been applied retrospectively to our historical rental market data to ensure that the Rental Index can continue to be used to provide analysis of trends in the private rental sector.  

The index and average prices are produced using HomeLet’s mix adjusted rental index methodology. This helps to track the representative rental values over time, which factor in changes in the mix of property types and locations of rented properties.

Data is gathered from our tenant referencing service, and our rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs. The data used in the HomeLet Rental Index is aggregated to regional, county and city level only. This ensures that all property or individual records remain strictly anonymous.

The HomeLet Rental Index is prepared from information that we consider is collated with careful attention, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue this report. The HomeLet Rental Index may not be used for commercial purposes; we shall not be liable for any decisions made or action taken in reliance upon the published data.

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Media & data enquiries

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For information regarding the HomeLet Rental Index please email rentalindex@homelet.co.uk

For media enquiries relating to the HomeLet Rental Index please email mediaenquiries@homelet.co.uk

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East Midlands

£704

South West

£914

East Of England

£978

South East

£1,087

West Midlands

£749

Yorkshire & Humberside

£680

North East

£542

North West

£782

Wales

£673

Scotland

£678

Northern Ireland

£662

Greater London

£1,572