HomeLet Rental Index

What is the average rental value in the UK?

For November 2020 the data shows that the average rental price for a new tenancy in the UK was £974 per calendar month (pcm), which is up by 2.9% on last year.

Latest Rental Index data: November 2020

  • The average rent in the UK is now £974, down unchanged from last month, but up 2.9% on last year.

  • When London is excluded, the average rent in the UK is now £828, this is up 0.9% on last month and 5.6% on last year.

  • Nine of the twelve regions monitored showed an increase in rental values between November 2019 and November 2020, with the South West seeing an increase of more than 8%.

  • The South West shows a the highest yearly increase of 8.6% between November 2019 and November 2020.

  • Average rents in London are down YOY, showing a 4.4% fall between November 2019 and November 2020, the sixth decrease in annual variance in subsequent months.

  • However, average rental value in London (£1,576) was still 90.3% higher than the rest of the UK excluding London (£828).

>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:

“Outside of the capital we’re seeing UK rents rise at the highest rate we’ve ever reported, yet in contrast rents in London are now decreasing at the highest rates that we’ve ever reported. This is a continuation of a theme that started back when the country exited the first national lockdown, with declines in central London boroughs being the most pronounced.

“Whilst the trend is being driven by the increase in people working from home and tenants looking for properties with extra space, both inside and outside the property, we may also be seeing the continued impact of Brexit on central London.

“Alongside the increase in rental values outside the capital, we’ll continue to see confidence grow in property investment in areas such as the North West. We’d also expect that demand for property in less built up areas, which are commutable to urban centres, will continue to increase across the country.

“Whilst the increases in rental values, coupled with the appreciation in property values, continues to make the private rented sector an attractive investment opportunity, there are still risks, particularly in the wake of the ongoing pandemic and the forecasted economic shock.

“Throughout the year many tenants have be impacted emotionally and financially by the pandemic, and in some cases, that’s effected their ability to meet their rental commitments. It’s exceptionally difficult for all parties involved when this happens, but landlords can access ‘rent protection services’ through professional letting agents, which ensure the rights of the tenants’ are protected, whilst also covering any missed rental payments for the landlord.

“Whilst 2020 has been a challenge, the letting industries response to the Covid-19 pandemic just reiterates the strength and professionalism of the private rented sector. All too often the vital role that letting agents play in the UK housing market is understated, especially when it comes to the consideration of legislation that impacts the sector, which is something that needs to change going forwards.”


Rental figures from the November 2020 HomeLet Rental Index

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

Rental figures from the November 2020 HomeLet Rental Index 

Region

Nov-20

Nov-19

Annual Variation

Oct-20

Monthly Variation

South West

£910

£838

8.6%

£892

2.0%

East Midlands

£689

£642

7.3%

£678

1.6%

Wales

£673

£630

6.8%

£657

2.4%

North West

£766

£721

6.2%

£764

0.3%

East Of England

£968

£917

5.6%

£961

0.7%

South East

£1,065

£1,013

5.1%

£1,053

1.1%

West Midlands

£733

£701

4.6%

£733

0.0%

Yorkshire & Humberside

£677

£652

3.8%

£675

0.3%

Scotland

£687

£664

3.5%

£693

-0.9%

North East

£536

£540

-0.7%

£546

-1.8%

Northern Ireland

£646

£667

-3.1%

£653

-1.1%

Greater London

£1,575

£1,648

-4.4%

£1,603

-1.7%

UK

£974

£947

2.9%

£974

0.0%

UK excluding Greater London

£828

£784

5.6%

£821

0.9%

Return to top


 

Exclusive Webinar With Paul Sloan | Key Risks & Opportunities for 2021

We’re hosting this exclusive webinar on Tuesday 8th December at 11:00, with industry insight from Paul Sloan, Operations Director at Spicerhaart. We’ll discuss the current state of the rental sector following the effects of Covid-19, how agents have adapted along with the key risks and opportunities for 2021.


Tell Me More

 Webinar Ad 1200x627 


 

Sign up to receive the latest updates

Enter your details below to receive updates on the latest findings from the HomeLet Rental Index, along with data, surveys or studies released by HomeLet.   

 


 


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.

Return to top


Media & data enquiries

You can sign up to receive the latest updates from the HomeLet Rental Index. 

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

Return to top