jANUARY 2024

HomeLet Rental Index

For January 2024, the data shows that the average rental price for a new tenancy in the UK was £1,268.

This icon shows a pound sign alongside an abstract icon of a building in grey.

£1,260 -0.6%

Average UK rent

This icon shows a pound sign alongside an abstract icon of a building in grey.

-0.6%

Change monthly

This icon shows a pound sign alongside an abstract icon of a building in grey with plus and minus symbols alongside it as well as a 12.

+7.5%

Change annual

Average UK rent drops by 0.6% to £1,260

The average rent price in the UK for January 2024 is £1,260.

Excluding London, the UK average is now £1,059.

Every region has seen an annual rent decrease except for the East Midlands, West Midlands and the South West.

The North East of England remains the cheapest area to rent in the UK, at £655 PCM.

Further details and data tables can be found in the full report.

Average UK rent
£1,260 +7.5%

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)
£1,059 PCM -0.2%

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
£2,081 PCM -2.2%

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.

Cheapest rent
£655 PCM -0.3%

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
£856 PCM -1.2%

Average rents in Wales decreased to £856 PCM, 1.2% less than last month but 6.47% higher than January 2023.

Largest MoM increase
+0.7%

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.

INDUSTRY INSIGHT

Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said:

Now is not the time to get carried away with these marginal improvements. On the one hand, it’s great to see rent prices continue to fall month on month, and by the biggest volume in years. But on the other hand, we also know the market and are well aware of the external factors that may impact it in the coming months.

“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.

RegionJan-24Dec-23 Jan-23Jan-22Monthly Var Annual Var 2021 Var £+PCM
Scotland£906£911£839£747-0.5%7.99%21.3%£159
Greater London£2,081£2,127£1,989£1,760-2.2%4.63%18.2%£321
North West£1,002£1,008£941£855-0.6%6.48%17.2%£147
Yorkshire & Humberside£852£855£790£726-0.4%7.85%17.4%£126
East Of England£1,205£1,215£1,112£746-0.8%8.36%61.5%£459
South East£1,349£1,353£1,228£1,128-0.3%9.85%19.6%£221
North East£655£657£623£578-0.3%5.14%13.3%£77
West Midlands£945£940£865£7920.5%9.25%19.3%£153
Northern Ireland£841£861£772£705-2.3%8.94%19.3%£136
East Midlands£881£875£803£7460.7%9.71%18.1%£135
Wales£856£866£804£727-1.2%6.47%17.7%£129
South West£1,146£1,138£1,085£9890.7%5.62%15.9%£157
UK£1,260£1,268£1,172£1,064-0.6%7.51%18.4%£196
UK excluding Greater London£1,059£1,061£977£897-0.2%8.39%18.1%£162

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.

Catch up with the latest industry news from HomeLet

View all of the latest news, views and tips from HomeLet to stay up to date with the rental industry.

The HomeLet Market Survey

In November 2022, HomeLet published our Market Survey, in which over 14,000 tenants and landlords provided their views and concerns for the future of the private rented sector (PRS).

As one of the most informative surveys to come out of the industry in recent years, it offers letting agents valuable data and insights which will be extremely useful when planning for the future. Agents need to know the profile and intentions of their customers to be able to advise them, offer the required services and support, and market properties well.

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