Average monthly rents across the UK have seen year-on-year growth of 6.6%, passing the £1000pm barrier for the second consecutive month and now stand at £1029.
According to the latest rental index figures from Homelet, every single region of the UK is showing both annual and monthly price increases.
London has seen the second price increase in as many months after a year of decline, with an annual variance increase of 2.1% to £1,645 PCM. Outside the capital, the average UK rent price is 8.7% higher than last year, up to £878 PCM.
The South West of England saw the highest annual price rise, with the current average price of £989 PCM marking a 12.9% increase on this time last year, and a 4.3% rise from last month’s data. Elsewhere, rent prices in the North East rose by 1.1% compared to last month to an average of £553 PCM, which is an annual increase of 3.4%.
Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, comments: “As a group, we’ve seen exceptional growth, supporting over 5,000 professional letting agents across the UK. With data based on 1m tenant references per year, The Rental Index provides the market with the most concise view of achieved rents.
“The data shows the exceptional growth in rental values, particularly in areas that are within commutable distance to London. Throughout the pandemic, the rate of growth in some regions has more than doubled against previous years.
“We see positive signs in the Capital, rents are now just 1.2% down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values. With restrictions easing, optimism is returning. The demand will steadily grow for the rest of the year.
“The private rented sector is exceptionally resilient, and demand for property remains high as we see the fast-growing Build-to-Rent industry meeting some of these needs across the country. That’s a theme that will continue for the foreseeable future, as tenants look to benefit from the lifestyle the industry can provide with features like on-site amenities and concierge services.
“We’ve supported thousands of agents who are dealing with rental arrears, and the end of the furlough schemes will sadly mean that there are further job losses in certain markets; the lettings sector has mitigated some of that risk through rent protection.”