Fast-rising rents are creating an ‘unstable market’

Both tenants and landlords are facing an ‘unstable market’ as rent prices reached record highs in June 2023, one expert says.

HomeLet’s latest Rental Index data shows that the average rent in the UK is now £1,229 per month – a 10.4% increase from the same period last year and a 1.3% rise from May.

The data is based on tenant referencing for more than 4,500 letting agents and it shows that every region has experienced an annual rent increase.

Now HomeLet’s chief executive Andy Halstead says that fast-rising rent rises is creating a risk for landlords and tenants – but also creating an unstable market.

‘Continued risk for tenants and landlords alike’

Mr Halstead said: “With another increase and UK prices now averaging at £1,229, it is clear that there is a continued risk for tenants and landlords alike, with a very real likelihood that tenants up and down the country might struggle with paying their rent.

“Scotland, in particular, has seen a soar in the rental market, with a 5.5% monthly swing showcasing an all-time high average rental price of £940.”

He added: “The capital shows no signs of slowing down either, with yet another record price recorded in Greater London.

“It is not so long ago that we were talking about London breaking the £2,000 barrier for the very first time – a big leap to £2,077 is a sign of how a lack of available rental properties is pushing prices up for tenants and making the private rental market more unstable for tenants and landlords alike.”

The most expensive city to rent in

While rents in Scotland have risen fastest with a 15.8% jump to £940 per month, London remains the most expensive city to rent in.

Tenants there are paying an average monthly price of £2,077, up 12.5% year-on-year and 1.9% month-on-month.

The report also reveals that the cheapest region in England is the North East which saw a slight dip in rent prices from May 2023, down 1.1% to £625 per month.

Wales also saw a modest increase of 0.9% from last month and 10.1% from last year, reaching £828 per month.