What is the average rental value in the UK?
For July 2020 the data shows that the average rental price for a new tenancy in the UK was £965 per calendar month (pcm), which is up by 0.6% on last year.
- The average rent in the UK is now £965, up by 0.6% on the same time last year.
- Average rents in London are now £1,611, down by 3.2% on last year.
- When London is excluded, the average rent in the UK is now £808, this is up by 1.4% on last year.
- All of the twelve regions monitored showed an increase in rental values between June 2020 and July 2020, with Northern Ireland seeing the biggest increase of 2.3%.
- In July 2020, average rental value in London (£1,611) was 99% higher than the rest of the UK excluding London (£808).
Commenting on this month’s data, Martin Totty, chief executive at HomeLet, said:
“July appeared to be yet another encouraging month for lettings – with a rise in rental prices across all of the twelve regions monitored compared to June - although the data does indicate a downward trend emerging YOY for those in the South East and Greater London.
“Demand for new tenancies is still strong, HomeLet received the same volume of property applications for tenant reference checks this month as the same month last year. That coupled with the steadily increasing rents is positive for the sector, but there’s naturally caution around what could happen over the coming months.
“HomeLet's tenant reference data – which is also forward looking – is one of the few sources with access to large data sets underpinning robust regional trend data. It’ll be interesting to see what trends emerge, especially on the regional level and how these variations will affect both landlords and tenants across the country over the coming months.”
The table below provides a regional breakdown of the latest average rental values in the UK.
Rental figures from the July 2020 HomeLet Rental Index
|Region||Jul-20||Jun-20||Jul-19||Monthly Var||Annual Var|
|Yorkshire & Humberside||£670||£658||£641||1.80%||4.50%|
|East Of England||£932||£917||£925||1.60%||0.80%|
|UK excluding Greater London||£808||£797||£794||1.40%||1.80%|
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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.
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?
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.
Introduction to the HomeLet Rental Index from Martin Totty, CEO
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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