Rental Market Reaches New Peaks, Says HomeLet Data

The latest figures from HomeLet’s September 2023 Rental Index paint a concerning picture of the UK rental sector. Nearly every region witnessed a rise in rental prices, hitting unprecedented levels.

The key findings from the index indicate:

  • The UK’s average rental price has achieved a new peak at £1,276 PCM, marking a 1.19% increase from the previous month.
  • When London is excluded from the statistics, the rest of the UK sees an average rental price of £1,061 PCM, showing a rise of 0.95% in just a month.
  • London’s rental market remains particularly heated, with prices jumping 1.59% to reach a staggering £2,179 PCM.
  • Even in regions historically more affordable, like the North-East, there’s no respite for renters. Prices there grew by 1.98% over the past month to reach £668 PCM.
  • HomeLet’s Rental Index, recognised for offering comprehensive and contemporary data on UK rental values, draws its insights from actual rental values achieved for new tenancies, giving an accurate pulse on the current state of the market.

Expressing concerns over the trajectory of the market, HomeLet & Let Alliance Chief Executive Officer, Andy Halstead, stated, “An unsustainable future for the rental market” is on the horizon unless there are significant changes. This current trajectory creates a “lose-lose situation for both tenant and landlord.”

Halstead, went on to say: “Excluding Scotland and the West Midlands, monthly rent has increased month-on-month across the UK yet again – painting a bleak picture for many tenants. In Northern Ireland alone, we’ve witnessed a 4.16% month-on-month increase in rental prices compared to August, pushing the average monthly rental price up to £876pcm. Clearly, this cannot be sustained, but it’s just one example of the chaos caused when governments intervene without fully understanding the market.

“In short, a solution needs to be found – and quickly. I do not have much hope. Interestingly, there has been a reduction in month-on-month rents in two regions. Scotland and the West Midlands monthly rent has decreased for the first time since January 2023, -0.81% and -0.53% respectively. The first change in the market for a long time, let’s watch this space.”

For those interested in a deeper dive, additional data and detailed tables are available directly from HomeLet.