HomeLet Rental Index

What is the average rental value in the UK?

For January 2021 the data shows that the average rental price for a new tenancy in the UK was £979 per calendar month (pcm), which is up by 2.7% on last year.

Latest Rental Index data: January 2021

  • The average rent in the UK is now £981, up by 0.2% from last month, and up 2.9% on last year.

  • When London is excluded, the average rent in the UK is now £839, this is up 0.1% on last month and 5.8% on last year.

  • Ten of the Twelve regions showed an increase in annual variance, with the largest, as last month, being the South West at 8%.

  • 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 3.9% fall between January 2020 and January 2021, the eighth decrease in annual variance in subsequent months.

  • However, the average rental value in London (£1,563) was still 86.3% 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:

“We're seeing the value of the private rented sector's responsiveness and the crucial role it plays in supporting the changing needs for people across the UK. The data continues to show that demand remains exceptionally high in many areas. The needs of tenants have shifted throughout the pandemic, creating upward pressure on locations that offer more space, both inside and outside the property.”

"Whilst rents are increasing; the expectation is that unemployment will increase further in the summer, undoubtedly leading to some tenants being unable to pay their rent. We've seen an exceptional demand for our rent protection products as agents look to safeguard their landlords and their management income. Landlords are concerned about the potential implications, should their tenants be impacted financially. Rent protection is a product that's helping the industry to add value to the service provided to landlords."

"There are still millions of people on the Governments Furlough schemes, and many will need to move home. That's why I think it's essential that we continue to carry out checks on people who are on Furlough whilst still offering rent protection for eligible tenants."

"Whilst the broader economic outlook is uncertain, the private rented sector is exceptionally resilient. We're now seeing the optimism of the vaccine rollout, but safety must remain the priority. The industry is working more remotely, and things like online viewings will continue to play an essential part in the tenancy process. This remoteness could be contributing to the increase we've seen in fraudulent and suspicious activity; it just highlights how critical high-quality checks are to the lettings process."


Rental figures from the January 2021 HomeLet Rental Index

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

Rental figures from the January 2021 HomeLet Rental Index 

Region

Jan-21

Jan-20

Annual Variation

Dec-20

Monthly Variation

South West

£919

£851

8.0%

£924

-0.5%

East Of England

£979

£907

7.9%

£983

-0.4%

South East

£1,094

£1,021

7.1%

£1,085

0.8%

East Midlands

£698

£656

6.4%

£694

0.6%

West Midlands

£741

£699

6.0%

£735

0.8%

Yorkshire & Humberside

£680

£651

4.5%

£682

-0.3%

Wales

£675

£650

3.8%

£679

-0.6%

Scotland

£683

£666

2.6%

£687

-0.6%

North West

£775

£764

1.4%

£772

0.4%

North East

£540

£540

0.0%

£539

0.2%

Northern Ireland

£648

£662

-2.1%

£651

-0.5%

Greater London

£1,563

£1,627

-3.9%

£1,556

0.4%

UK

£981

£953

2.9%

£979

0.2%

UK excluding Greater London

£839

£793

5.8%

£838

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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