MARKET: ‘Crazy’ average rent hits all-time high of £1,243 a month

The average UK monthly rent has hit an all-time high of £1,243 PCM, up 1.1% from last month, latest figures from HomeLet’s The Rental Index reveals.

The Index figures from July 2023 show UK average rental prices continuing to rise, even in the UK’s typically cheaper regions.

highest rent

Excluding London, the average rent is £1,037, up 1% from last month while Scotland now has its highest rental average yet at £973 PCM.

The cheapest region, the North-East, has risen 1.8% from last month to £636 PCM.

Homelet’s trends within its index  are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period.

Andy Halstead, HomeLet and Let Alliance Chief Executive, says: “July’s average rental price has now hit an astonishing £1,243, the highest average yet.

“This all-time high paired with every region of the UK seeing a month-on-month price rise is a concern for both tenants and landlords.

“We’re edging closer and closer to a situation in which a large portion of potential tenants are simply unable to live, which is a dangerous situation for the market to be in.”

Despite extreme rental prices Halstead points out that doesn’t mean landlords are enjoying all time high margins.

OUT OF KILTER

He adds: “The North-East has been out of kilter with the rest of the UK in recent months with few price rises. However, July 2023 has seen even the North-East rise 1.8% to £636 PCM.

“The nation-wide skyrocket in rent and mortgage increases is proof that no one is winning, when will it be put to a stop?

“At the other end of the country, London’s average rental price towering above £2,000 PCM appears to now be the norm, a milestone that was only breached for the first time less than a year ago.

“Now hitting £2,109 PCM, London’s crazy rental market is mirroring the UK as a whole and shows no sign of slowing down – the madness continues!”