HomeLet has released THE RENTAL INDEX figures from January 2023, with UK average rental prices continuing to drop month-on-month incrementally.

The headlines from this month’s report are:

· The average rent in the UK is now £1,172 PCM, down 0.2% from last month’s average of £1,174 PCM

· When London is excluded, the average rent in the UK is £977 PCM, with no variation from the previous month

· London saw the largest monthly variance, experiencing a 0.9% decrease from last month, dropping below their previous average of £2,007 PCM to £1,989 PCM

· Rental averages in the North East and the East Midlands both saw a 0.8% increase, with averages rising to £623 PCM and £803 PCM, respectively

The HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.

The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK.

Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said:

“The last month of 2022 saw the first drop in the average UK rental price in over a year, and this has continued into 2023 with another incremental decline – down 0.2%, the average rent in the UK is now £1,172 PCM.

Even despite the small decline, factors across the rental market and wider economy suggest prices will continue to rise overall throughout 2023. Rents are historically high, and the dip in average rents in recent months has only been a drop out of the ocean. Excluding London, the average rent in the UK has remained the same as the previous month at £977.

The cost of living crisis is showing few signs of abating anytime soon, with tenants facing rising costs across all areas of their lives. The increasing pressure on tenants looks likely to have a knock on effect – tenants facing difficulties paying rent could see landlords choosing to exit the market altogether, leading to a spiral that exacerbates the shortage of rental properties and further drives prices upwards.”