Rents in many regions dropped in November compared with October, new figures show, and yet many tenants are now paying out hundreds of pounds more each month compared to this time last year, and an average of more than £200 than in 2021.
The latest data from HomeLet shows that, across the country, average monthly rent is up just under 9% (8.85%) compared to the end of 2022. The average UK tenant can now expect to pay £1,279 per calendar month (pcm) for their rent, a staggering £221 more every month than what the post-Covid rental market offered in December 2021.
As rising prices fail to match wage increases for many, tenants in the UK can now expect to cough up nearly a third (33.2%) of their wages for rent, which is a 2.1% increase compared to last year.
In the capital, people can expect to pay nearly two-fifths (39.3%) of their wages in rental costs. Despite the support announced for tenants by Prime Minister Rishi Sunak in the autumn budget, HomeLet’s figures give a stark view into the reality of the cost of living crisis in the UK.
Despite this, the average rent in the UK decreased month-on-month from October by -0.3% and now sits at £1,279pcm or £2,174pcm in London. There was a negative variance for most regions in the country, excluding Wales, West Midlands and the East of England, which saw a mean average 0.5% monthly increase.
Andy Halstead, HomeLet & Let Alliance chief executive officer, said: “December is always a time for reviewing the year with our Rental Index. Sadly, this year there is little good to report. As the year comes to a close, we can share that rent prices across the UK have increased by nearly 10% in a year, and are up more than 20% in two years, an exponential and wholly unsustainable increase that is going to price tenants out of their homes should the madness continue.
“Though the autumn budget laid out by the government indicated more support for tenants, in areas such as London, which has seen rent increase by £417 since 2021, this money will barely scratch the surface when it comes to managing increasing costs. The problem is not just rising rent payments, but also the increasing cost of food and other household bills.
“Despite huge yearly increases, our November data actually reports a dip in monthly rent prices across most regions compared to October. Rent is down 0.3% across the UK from last month and as much as minus 3.2% in Scotland, which also saw a decrease last month.
“I hope this is a sign of more positive movement in the market on the horizon, as spiralling costs are beneficial for neither landlord nor tenant; and we strive to support both. Especially for landlords with mortgages, the outlook is bleak for some time to come. The worst outcome possible for landlords is tenants failing to pay rent, everyone loses. There has never been a more important time for landlords to protect their rental income.”
