HomeLet Rental Index

What is the average rental value in the UK?

For May 2020 the data shows that the average rental price for a new tenancy in the UK was £959 per calendar month (pcm), which is up by 2.7% on last year.

Latest Rental Index data: May 2020

  • Average rents across the UK rose by 2.7% in May 2020 when compared to the same month a year previously; the average monthly rent is now £959
  • Rents in London decrease by 0.2% in May 2020 than in the same month of 2019; the average rent in the capital now stands at £1,598 a month.
  • When London is excluded, the average UK rental value was £803 in May 2020, this is up 3.5% on last year.
  • HomeLet's May 2020 Rental Index reveals that rents rose from last year in 10 out of 12 of the regions covered in the research.
  • In May 2020, average rental values in London (£1,598) were 67% higher than the UK (£959)
  • When London is excluded the average rent in the UK was £803 in May 2020, average rents in London (£1,598) were 99% higher than the rest of the UK

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


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

“The Index returns this month on the back of a marked pick-up in the number of new tenancies agreed during May, providing a forward-looking view of actual rents being achieved. 

This month’s data is both surprising and yet not surprising. Surprising that in many regions of the country, especially away from London and the South East, rents have generally held up well month on month and are universally ahead over the year as a whole. Not so surprising is evidence of a softening in rents in the short term in the higher average rent regions and, for the first time in almost three years, a negative movement in London compared with a year ago and a much bigger drop from the prior month.

We are clearly in unprecedented times and predicting even the next few months seems fraught with risk. And ‘risk’ and attitudes to it, would seem likely to be a dominant theme for all actors in our sector for the foreseeable future. Rents may go up or they may go down and defaults may follow the same pattern. Nobody can be sure other than there is one certainty… and that is there is now more uncertainty. June’s HomeLet Rental Index will provide another data point to evidence if we have a new trend line and the direction of travel is different to the one we’d grown accustomed to over recent times.

We’ll report again in July.”


Rental figures from the May 2020 HomeLet Rental Index

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

Rental figures from the March 2020 HomeLet Rental Index

Region
May-2020
Apr-2020
May-2019
Annual
Variation
North West
£758
£744
£705
7.5%
Wales
£648 £646 £613
5.7%
South West
£870
£879
£828
5.1%
Scotland
£682
£665
£653
4.4%
West Midlands
£721
£727
£693
4.0%
Yorkshire & Humberside
£652
£647
£627
4.0%
East Midlands
£659
£656
£640
3.0%
North East
£527
£521
£522
1.0%
East Of England
£923
£929
£916
0.8%
South East
£1,037
£1,043
£1,029
0.8%
Greater London
£1,598
£1,668
£1,602
-0.2%
Northern Ireland
£651
£663
£665
-2.1%
UK Average 
£959
£968
£934
2.7%
UK
(excluding Greater
London)
£803
£803
£776
3.5%

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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 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


Introduction to the HomeLet Rental Index from Martin Totty, CEO


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

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

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