HomeLet Rental Index

What is the average rental value in the UK?

For September 2020 the data shows that the average rental price for a new tenancy in the UK was £987 per calendar month (pcm), which is up by 2.1% on last year.

Latest Rental Index data: September 2020

  • The average rent in the UK is now £987, up 0.2% on last month, and 2.1% on last year.

  • When London is excluded, the average rent in the UK is now £828, this is up 0.4% on last month, and 3.9% on last year.

  • Ten of the twelve regions monitored showed an increase in rental values between September 2019 and September 2020, with the South West seeing an increase of more than 6%.

  • The South West shows a the highest yearly increase of 6.6% between September 2019 and September 2020.

  • Average rents in London are down YOY, showing a 2.8% fall between September 2019 and September 2020, the fourth decrease in annual variance in subsequent months.

  • However, average rental value in London (£1,646) was still 98.8% higher than the rest of the UK excluding London (£828).

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


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

 “Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

This is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn`t help tenants much if, for them, the prospect of securing first time mortgage finance remains as elusive as ever.

So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of: taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”


Rental figures from the September 2020 HomeLet Rental Index

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

Rental figures from the September 2020 HomeLet Rental Index 

Region

Sep-20

Sep-19

Annual Variation

Aug-20

Monthly Variation

South West

£902

£846

6.6%

£899

0.3%

North West

£770

£739

4.2%

£781

-1.4%

Yorkshire & Humberside

£673

£657

2.4%

£678

-0.7%

Scotland

£683

£676

1.0%

£692

-1.3%

North East

£558

£535

4.3%

£546

2.2%

West Midlands

£747

£718

4.0%

£739

1.1%

East Of England

£967

£954

4.3%

£954

1.4%

East Midlands

£678

£653

3.8%

£670

1.2%

Wales

£650

£634

2.5%

£641

1.4%

Northern Ireland

£657

£673

-2.4%

£668

-1.3%

South East

£1,074

£1,045

2.8%

£1,070

0.4%

Greater London

£1,646

£1,694

-2.8%

£1,653

-0.4%

UK

£987

£967

2.1%

£985

0.2%

UK excluding Greater London

£828

£797

3.9%

£825

0.4%

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Introduction to the HomeLet Rental Index from Martin Totty, CEO

 


 


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 2020, 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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