Renters face ‘bleak’ future as average rent hits record high

Renters in the UK are facing a ‘bleak’ future as the average rent price has reached another record high of £1,276 in September 2023, according to one index.

The data from HomeLet, the tenant referencing and insurance provider, reveals that the average rent price in the UK has increased by 8.9% since September 2022, and by 1.38% since August this year.

And its chief executive says he doesn’t ‘hold out much hope’ that a solution to fast-rising rents will be found soon.

Excluding London, the UK average is now £1,061, up 8.15% from last year and 1.34% from last month.

London’s average monthly price has increased by 1.59% from last month to £2,179, 12.03% higher than in September 2022.

The capital continues to be the most expensive region to rent in the UK, with rents more than double the national average.

‘Painting a bleak picture for many tenants’

Homelet’s chief executive, Andy Halstead, said: “Excluding Scotland and the West Midlands, monthly rent has increased month-on-month across the UK yet again – painting a bleak picture for many tenants.

“In Northern Ireland alone, we’ve witnessed a 4.16% month-on-month increase in rental prices compared to August, pushing the average monthly rental price up to £876pcm.

“Clearly, this cannot be sustained, but it’s just one example of the chaos caused when governments intervene without fully understanding the market.”

‘A solution needs to be found’

He added: “In short, a solution needs to be found – and quickly, I do not have much hope.

“Interestingly, there has been a reduction in month-on-month rents in two regions.

“In Scotland and the West Midlands monthly rent has decreased for the first time since January 2023, -0.81% and -0.53% respectively.

“The first change in the market for a long time, let’s watch this space.”

Every region has seen rents increase

Every region in the UK has seen an annual rent increase, with Scotland showing the largest growth of 13.34% to £977.

The North East of England remains the cheapest area to rent in the UK, at just £668, but still up 6.37% from last year.

Average rents in Wales rose to £852, 1.19% higher than last month and 7.3% higher than September 2022.

Northern Ireland saw the highest monthly increase of 4.16%, pushing the average monthly rental price up to £876.

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