HomeLet Rental Index

What is the average rental value in the UK?

For September 2021 the data shows that the average rental price for a new tenancy in the UK was £1,061 per calendar month (PCM), which is up by 7.5% from last year.

Latest Rental Index data: September 2021

  • The average rent in the UK is now at a record high of £1,061, up 7.5% on the same time last year, and up 0.8% from last month's figures.

  • London's average monthly price has rose for the fourth month in a row after a year of decline, with an annual variance increase of 6.4% to £1,752 PCM.

  • Excluding London, the average UK rent price is 7.6% higher than last year, up to £891 PCM.

  • Wales saw the highest annual price rise, with the current average price of £734 PCM marking a 12.9% increase on this time last year, and a 1.5% rise from last month's data.

  • Elsewhere, rent prices in the South West rose by 1.2% compared to last month to an average of £971 PCM, which is an annual increase of 7.6%.

>About our methodology   >Media & data enquiries   >Data table   >Report data.xlsx


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 the latest data, Matthew Carter, HomeLet & Let Alliance Head of Marketing, said:

“UK rents are up by 9.7% on pre-pandemic levels (2019), but most of the increases have happened this year. At first, we saw rents outside London surge whilst prices in the capital dipped, but we’re now seeing rents in London rise much more rapidly, fueling the record rental levels we see across the country.

“Typically, rental prices rise in line with inflation and wage growth; that’s something we’ve continued to see. Despite record rents, tenants moving home spend a similar percentage of their income on their monthly rent. In September, the average household spent 29.6% of their gross income on rent, compared with 30.9% in September 2019, before the pandemic.

“Housing follows the same fundamental laws of economics as other goods that consumers need. Ultimately demand, coupled with lower stock levels for certain types of property, are driving up rental values. The concern is that we’re at a point where there are some areas with exceptionally high demand.

“Landlords and the lettings market have faced a continued raft of changes and legislation; the Government needs to carefully consider how any future policy might impact the 4.5 million households in the private rented sector. The Governments push on homeownership shouldn’t be done to the detriment of an industry that plays a critical role in UK housing.”


Rental figures from the September 2021 HomeLet Rental Index

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

Rental figures from the September 2021 HomeLet Rental Index 

Region

Sep-21

Sep-20

Annual Var

Aug-21

Monthly Var

Wales

£734

£650

12.9%

£723

1.5%

Scotland

£755

£683

10.5%

£758

-0.4%

East Midlands

£735

£678

8.4%

£742

-0.9%

North West

£830

£770

7.8%

£820

1.2%

South West

£971

£902

7.6%

£1,006

-3.5%

Yorkshire & Humberside

£725

£673

7.7%

£724

0.1%

Northern Ireland

£705

£657

7.3%

£704

0.1%

West Midlands

£797

£747

6.7%

£790

0.9%

Greater London

£1,752

£1,646

6.4%

£1,713

2.3%

South East

£1,139

£1,074

6.1%

£1,132

0.6%

East Of England

£1,021

£697

5.6%

£1,021

0.0%

North East

£578

£558

3.6%

£572

3.6%

UK

£1,061

£987

7.5%

£1,053

0.8%

UK excluding Greater London

£891

£828

7.6%

£892

-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 2017, 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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