"It isn’t just tenants who are feeling the financial strains of increasing rental prices. The exacerbating economic issues around rental prices are also leaving landlords with increasing rent arrears, resulting in struggles to make mortgage payments and other expenses"
HomeLet has released its rental index figures for August 2023, revealing that average UK rental prices have continued to rise across all regions, including the capital.
According to the data, a further 1.4% rise has pushed average rents to £1,261 PCM, with prices in London continuing to soar, up 1.7% to a new high of £2,145 PCM. Excluding London, the average price of rent in the UK is £1,051 PCM, up 1.4% from last month.
The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK.
Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, comments: “As summer 2023 prepares to bow out and temperatures drop, rental price records continue to soar across 50,000 new tenancies referenced by Homelet during August alone.
“Average monthly rent reached £2,145 per month with London included, and outside of London, an incredible £1,051 per month, every single region is reporting a sizeable month-on-month increase. These figures, on top of the current cost of living, are jaw-dropping!”
A vicious financial circle
Andy concludes: “It isn’t just tenants who are feeling the financial strains of increasing rental prices. The exacerbating economic issues around rental prices are also leaving landlords with increasing rent arrears, resulting in struggles to make mortgage payments and other expenses.
“It really is a vicious circle, with very few winners. We see no end to the madness, with rental supply coming under more pressure as Landlords try and exit the market.”
