RENTAL PRICE INFLATION SLOWS, OCTOBER HOMELET RENTAL INDEX REVEALS
- Average rents across the UK rose by 0.9% in October when compared to the same month a year ago; the average monthly rent is now £909
- Rents in London rose 0.6% in October, year-on-year; the average monthly rent in the capital now stands at £1,556
- On an annualised basis, rents rose in 11 out of the 12 regions of the UK covered by the research; however, the average rents secured in October were lower than in September in every region, contributing to a significant slowing in the annual rate of inflation.
| About our data: HomeLet Rental Index provides the most comprehensive and up to date data on new tenancies in the UK. As part of referencing prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property, together with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. This is in contrast to many other rental indices which are based on all properties which are being managed, which may have had rental amounts agreed as long as two years ago. |
Rents in the UK rose by an average of 0.9% during October, new data from HomeLet reveals, the fourth successive month of increases following a short period of falling rents in the Spring. The average rent agreed on a new tenancy signed in October was £909 according to the October HomeLet Rental Index, compared to £901 in the same month of last year.
However, while October’s average increase reflects higher rents recorded in 11 out of the 12 areas of the country that HomeLet monitors – the South-East was the exception – the pace of rental price inflation has slowed. October’s 0.9% increase follows rises of 2.0% and 2.4% in September and August respectively. Indeed, on a monthly basis, rents on new tenancies in October were lower in every area of the country than in September.
The national picture was reflected in London where annualised rental price inflation was 0.6% in October, down from 1.8% and 2.5% in September and August. The average tenancy agreed in London last month cost £1,556, compared to £1,593 in September. HomeLet’s regional data is available in more detail via an online interactive infographic.
Rental figures from the October 2017 HomeLet Rental Index
| Region | Average rent in October 2017 | Average rent in September 2017 | Average rent in October 2016 | Monthly variation | Annual variation |
| East Midlands | £618 | £620 | £596 | -0.3% | 3.6% |
| Northern Ireland | £625 | £636 | £604 | -1.7% | 3.4% |
| West Midlands | £683 | £692 | £663 | -1.3% | 2.9% |
| North West | £692 | £697 | £676 | -0.7% | 2.3% |
| Yorkshire & Humberside | £628 | £630 | £615 | -0.3% | 2.1% |
| Scotland | £621 | £628 | £608 | -1.1% | 2.1% |
| North East | £528 | £529 | £518 | -0.2% | 1.9% |
| South West | £790 | £814 | £777 | -2.9% | 1.6% |
| Wales | £612 | £617 | £603 | -0.8% | 1.5% |
| Greater London | £1,556 | £1,593 | £1,547 | -2.3% | 0.6% |
| East of England | £901 | £914 | £899 | -1.4% | 0.2% |
| South East | £977 | £1,001 | £985 | -2.4% | -0.8% |
| UK | £909 | £927 | £901 | -1.9% | 0.9% |
| UK excluding Greater London | £755 | £766 | £744 | -1.4% | 1.5% |
| Notes:
|
Based on new tenancies in October 2017 | Based on new tenancies in September 2017 | Based on new tenancies in October 2016 | Comparison of average rent in October 2017 and September 2017 | Comparison of average rent in October 2017 and October 2016 |
HomeLet Rental Index Regional Variance Figures for October 2017
Shared by: Hayley Collins – McGrory Communications
You May Also Enjoy
Brexit housing market winners and losers
The Rental Market is Rebalancing
Dispelling the top five biggest letting agent myths
A fifth of Gen Z would move 25 miles or more for affordable housing
Can AI-powered search platform push out Rightmove for renters?
