UK Average Rent Increases For a 5th Consecutive Month

According to the latest data from the HomeLet Rental Index, the average monthly rent across the UK increased again in May, growing 0.7% to £1,307. This is the fifth month in a row that rental prices have grown, reflecting the ongoing pressure on the private rental sector.

UK rents excluding Greater London increased by 0.8%, bringing the average monthly rental price outside of the capital to £1,124. While some regions have seen a decrease in annual rent, the overall trend across the country is on the up, with continuous pressure on the supply of rental properties shaping the rental market.

Will Rents Continue To Rise?

The growth in rental prices across the country shows no sign of slowing down, with key areas seeing significant growth as tenant demand massively outweighs the available property. With the undersupply of property unable to keep up with the growth of the population, prices will continue to increase, and with the new quality of property coming to the market, as new homes are available, the rental demand will continue to increase.

The New Standard Of Renting

While prices are partially increasing due to the cost of living and interest rates, there is another element that contributes to the higher rental pricing. More and more renters are now comfortable with renting as a long-term living situation, and when committing to renting for a substantial amount of time, want to have the best quality of life during this period. Previously, renters would accept an average living space for a short term, to get onto the property ladder, but with less and less first-time buyers now approaching the market, renters want to make the most of their money and live in the best buildings with a range of amenities to live a more comfortable lifestyle.

New-build developments, whether fitting into the BTR or the co-living sector, are expected to be of a higher quality, with a level of luxury as standard, and a range of on-site amenities to improve the quality of life in these spaces. These developments come with a higher rental price, but renters are willing to pay more for spaces that offer these sorts of benefits.

Will Prices Continue To Grow?

The expectation is that prices will continue to grow, with the past 5 months a strong example of what we can expect. Property demand is not about to slow down, and with the new quality expected from future property developments, the vast majority of renters are willing to pay more to secure a property they want to live in long-term.

If you'd like to know more about UK rental prices, please feel free to reach out to our teams today.