Average rents dip from last month but still showing big annual hike

HomeLet says the average rent in the UK is now £1,059, down a modest 0.2 per cent from a month ago.

However, the annual figure is still up by 8.7 per cent. When London is excluded the average rent in the UK is now £888, this is up by 8.2 per cent on last year. 

Average rents in London were £1,759 last month, an increase of 9.7 per cent on last year.

Meanwhile the biggest regional change over the past year is in Wales with a huge 12.9 per cent increase. 

Chris Turner, head of business development for Homelet and Let Alliance, says: “In normal market conditions, we might see spikes in rental values for desirable or emerging areas, but we’re still seeing a really high demand for all property in the lettings market; that’s now the case in most parts of the UK. 

“With fewer new properties coming up to rent when compared to pre-pandemic levels, we can expect the trends we see continuing throughout 2022. 

“There was no specific mention of lettings or the private rented sector in the Budget, which might come as a welcome relief to many landlords, especially given the raft of changes that have impacted them in the past few years. 

“The Chancellor announced a £65m support package for vulnerable renters, which will be welcome news for some. As the UK’s largest provider, we’ve dealt with an unprecedented rise in the volume of claims on Rent Protection insurance throughout the pandemic. 

“With factors like the ban on evictions, we’ve also seen a record increase in the number of deferrals and payment plans put in place, with an exceptional level of compassion from landlords and letting agents for the circumstances many tenants have faced. Whilst there’s a focus on the pandemic impacting tenants, it has also significantly impacted many landlords without protection, both financially and emotionally.” 

  

Region	Oct-19	Oct-20	Sep-21	Oct-21	Monthly Variation (%)	Annual Variation (%)	Variation on 2019 (pre-COVID)
Wales	£623	£657	£734	£742	1.1%	12.9%	19.1%
Northern Ireland	£672	£653	£705	£729	3.4%	11.6%	8.5%
Greater London	£1,665	£1,603	£1,752	£1,759	0.4%	9.7%	5.6%
North West	£727	£764	£830	£832	0.2%	8.9%	14.4%
West Midlands	£706	£733	£797	£792	-0.6%	8.0%	12.2%
North East	£538	£546	£578	£588	1.7%	7.7%	9.3%
Yorkshire & Humberside	£653	£675	£725	£727	0.3%	7.7%	11.3%
South West	£840	£892	£971	£960	-1.1%	7.6%	14.3%
South East	£1,020	£1,053	£1,139	£1,132	-0.6%	7.5%	11.0%
East Midlands	£642	£678	£735	£728	-1.0%	7.4%	13.4%
East Of England	£924	£961	£1,021	£1,027	0.6%	6.9%	11.1%
Scotland	£674	£693	£755	£738	-2.3%	6.5%	9.5%
UK	£953	£974	£1,061	£1,059	-0.2%	8.7%	11.1%
UK (excluding Greater London)	£788	£821	£891	£888	-0.3%	8.2%	12.7%