Homelet: Rents jump 10% to top a record £1,240 in July

Posted on Monday, August 14, 2023

Average rents across the UK jumped 10.3% to a record £1,243 in July from a year ago, data from the Homelet rental index shows. 

The lettings referencing and insurance firm adds that the highest annual increase in rents came in Scotland, at 15.8%, followed by London, with a 12.9% rise. 

Month-on-on month tenant’s housing costs lifted by 1.1% across the country in July. 

HomeLet and Let Alliance group chief executive Andy Halstead says: “We’re now edging towards a situation where a large proportion of tenants are simply unable to afford to live.  

“This should not be mistaken for all-time margins for landlords, as they are unable to rely on rental income.” 

In London, the average rent lifted 1.9% over the month to a new high of £2,109. Rents in the capital are now around 70% higher than the UK average, at £1,037, says the survey. 

It adds that “affordability for renters is weakening,” with renters spending an average of 32.1% of their income on their rent, up from 30.2% a year ago. 

The report points out that tenants in the North East and Scotland spent 1.9% less of their income on rent than 12 months ago, the only two regions where this occurred. 

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