As of June 2024, the rental market in the UK continues to experience notable changes and trends:
Average Rent Increases: The average rent in the UK has reached £1,273 per month, marking a 7.5% increase from the previous year. Excluding London, the average rent is £1,070, which is also 7.7% higher than last year (Office for National Statistics) (HomeLet).
Regional Variations:
- London: The average rent in London is £2,102 per month, reflecting a 6.2% annual increase. London remains the most expensive region to rent, although the growth rate has slowed compared to previous years (HomeLet) .
- North East: This region has the lowest average rent in England at £679 per month, despite a 6.2% increase from the previous year (HomeLet).
- Wales and Scotland: In Wales, the average rent is £845 per month, up 4.8% from the previous year, but slightly down from the previous month. Scotland’s average rent is £952, reflecting a 10% annual increase (Office for National Statistics) (HomeLet).
Inflation and Affordability: The rate of rental inflation has slowed down to 6.6% for new lets, the lowest rate in 2.5 years. Despite this slowdown, affordability remains a significant issue, with rental costs consuming a larger portion of average gross earnings (Zoopla) .
Supply and Demand Dynamics: The rental market is characterized by a high demand and low supply, with 15 households competing for each available rental property. While the number of homes available for rent has increased by 18% compared to last year, the overall supply remains low, supporting continued rent increases.
For more detailed insights and data, you can refer to the Office for National Statistics, HomeLet, and Zoopla reports.
