London was the most expensive area in the UK for renters in September, with average rents at £1,752 per calendar month – an annual increase of 6.4 percent. The capital recorded the biggest monthly increase in the country, with prices rising by 2.3 percent.
The North East of England remains the cheapest area to rent in the UK, with prices averaging £578 per month – up 1% on the previous month and 3.6% on 2020, according to new figures from the HomeLet rental index.
Average rent in the UK rose to a record £1,061 per calendar month (pcm) in September, 7.5% higher than the same period last year and 0.8% higher than the previous month.
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Excluding the capital, average rents in the UK rose to £891 per month, up 7.6% year-on-year.
The index also found that the South East of England is the second most expensive region to rent, with average prices of £1,139 per month, up 6.1% on 2020. Rental prices in the East of England averaged £1,021, up 5.6% on the previous year, and in the South West rents rose 7.6% to £971.
Northern Ireland comes second on the list of cheapest places to rent, with an average monthly rent of £705 per month. Yorkshire and the Humber come in third with an average rent of £725, followed by Wales (£734) and the East Midlands (£735).
All regions in the UK saw year-on-year price increases. The largest increase was in Wales, with prices rising by 12.9%. Scotland came in second, with prices rising by 10.8% year-on-year.
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In the UK, rents have risen 9.7 percent from pre-pandemic levels, but most of the increases have occurred this year, according to the HomeLet Rental Index.
In September, the average household spent 29.6 percent of its gross income on rent, compared to 30.9 percent in September 2019, before the pandemic.
Tenants in London spend the largest percentage of their income on rent – an average of 33.7%.
The most affordable is the Northwest, where tenants spend 22.1% of their income on rent.
The North West saw the biggest changes in affordability in the year to September 2021, with renters now spending an average of 27.2% of their income on rent, up from 29% 12 months ago.
“Rental prices typically rise in line with inflation and wage growth, and we continue to see this. Despite record rents, tenants who move are spending a similar percentage of their income on their monthly rent,” said Matthew Carter, marketing director at HomeLet & Let Alliance.
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“The same basic economic laws apply to housing as to other goods that consumers need. Ultimately, demand combined with lower inventories of certain types of properties leads to rising rental prices. What is worrying is that we have reached a point where there are some areas of exceptionally high demand.
“Landlords and the rental market are facing a flood of changes and legislation; the Government must carefully consider how future measures could affect the 4.5 million households in the private rented sector. The Government’s support for home ownership should not come at the expense of an industry that plays a crucial role in the UK’s housing sector.”
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