HomeLet Rental Index

What is the average rental value in the UK?

For August 2020 the data shows that the average rental price for a new tenancy in the UK was £985 per calendar month (pcm), which is up by 1.5% on last year.

Latest Rental Index data: August 2020

  • The average rent in the UK is now £985, up 2.1% on last month, and 1.5% on last year.

  • When London is excluded, the average rent in the UK is now £825, this is up 2.1% on last month, and 2.9% on last year.

  • Eleven of the twelve regions monitored showed an increase in rental values between August 2019 and August 2020, with two of those regions seeing an increase of more than 5%.

  • The South West shows a yearly increase of 5.5% between August 2019 and August 2020.

  • Average rents in London are down YOY, showing a 2.1% fall between August 2019 and August 2020, the fourth decrease in annual variance in subsequent months.

  • However, average rental value in London (£1,653) was still 100% higher than the rest of the UK excluding London (£825).

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


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

 “Throughout the ongoing Covid-19 pandemic, private landlords must feel that they alone are shouldering much of the burden to support those tenants who have been financially impacted. Property owners are having to dig deep to find the requisite reserves of resilience and resolve to ‘stay the course’.

“The situation has been exacerbated further by the last minute and very material amendments to government policy, when landlords have shown the flexibility demanded of them to help their tenants’ bridge their contractual obligations.

“Whilst there are many stories of constructive dialogue between landlords and tenants on existing tenancy terms, it’s encouraging that rents agreed on new tenancies in August, in every region outside London, are up on the same month last year and, in almost all regions, ahead of where they were only one month previously. London may be experiencing a correction of sorts in supply versus demand and the sharp reversal of price growth from positive 4% pre-Covid to negative 2% now, represents a significant swing.

“Elsewhere, average monthly rents are edging up on both a monthly basis and also on a long-term smoothed trend which removes the month on month fluctuations to provide a clearer trend line over time. Outside the capital, the rental sector still appears to offer sound fundamentals and, for committed landlords able to manage through the current challenges, having access to a wide range of financial protection solutions via professional letting agents, there are some bright spots to add into the mix.”


Rental figures from the August 2020 HomeLet Rental Index

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

Rental figures from the August 2020 HomeLet Rental Index 

Region

Aug-20

Aug-19

Annual Variation

Jul-20

Monthly Variation

South West

£899

£852

5.5%

£876

2.6%

North West

£781

£741

5.4%

£773

1.0%

Yorkshire & Humberside

£678

£655

3.5%

£670

1.2%

Scotland

£692

£671

3.1%

£692

0.0%

North East

£546

£531

2.8%

£535

2.1%

West Midlands

£739

£720

2.6%

£721

2.5%

East Of England

£954

£930

2.6%

£932

2.4%

East Midlands

£670

£655

2.3%

£656

2.1%

Wales

£641

£636

0.8%

£638

0.5%

Northern Ireland

£668

£664

0.6%

£674

-0.9%

South East

£1,070

£1,064

0.6%

£1,034

3.5%

Greater London

£1,653

£1,689

-2.1%

£1,611

2.6%

UK

£985

£970

1.5%

£965

2.1%

UK excluding Greater London

£825

£802

2.9%

£808

2.1%

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Introduction to the HomeLet Rental Index from Martin Totty, CEO

 


 


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.

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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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