Copy article

Average rents down slightly - do you agree?

ended 22. May 2024

Official data published this morning showed that rents were down slightly on the previous month (key points below). Is this what you're seeing? After all, many landlords continue to exit the sector and are under huge pressure on the mortgage front. Does this data stack up or feel a bit out of sync?

  • Average UK private rents increased by 8.9% in the 12 months to April 2024 (provisional estimate), down from 9.2% in the 12 months to March 2024. 
  • Average rents increased to £1,293 (8.9%) in England, £730 (8.2%) in Wales and £952 (10.0%) in Scotland, in the 12 months to April 2024. 
  • In Northern Ireland, average rents increased by 10.4%, in the 12 months to February 2024. 
  • In England, rents inflation was highest in London (10.8%) and lowest in the North East (5.8%), in the 12 months to April 2024. 
  • In Great Britain, average rent was highest in Kensington and Chelsea (£3,356) and lowest in Dumfries and Galloway (£477). 
  • Average UK house prices increased by 1.8% in the 12 months to March 2024 (provisional estimate), up from a decrease of 0.2% (revised estimate) in the 12 months to February 2024.

3 responses from the Newspage community

Copy all

Copy

Editor
Michelle Lawson
Director at Lawson Financial
There is always going to be a cieling limit mainly from an affordability to property ratio but demand is still there and may well fluctuate, dip and rebound- the regional differences are insightful. With landlords exiting the sector due to the burdensome taxation, high interest rates and regulatory pressures, less properties are available and demand heightens.
Copy

Editor
Harps Garcha
Director at Brooklyns Financial
The rental market is undergoing significant changes. Tenants face stringent reference checks and financial constraints, while rental prices continue to rise faster than wages. This issue is worsened by a decreasing supply of rental properties, as landlords sell their properties or raise rents due to increasing mortgage costs. These trends highlight a broader housing affordability crisis, with a growing imbalance between rental supply and demand.
Copy

Editor
Dariusz Karpowicz
Director at Albion Financial Advice
This data shows a slight decrease in rent inflation, but this isn't felt by most renters who have experienced massive increases. Since mortgage rates for landlords have risen drastically, many, especially smaller landlords, are selling their investment properties. This trend reduces the number of rental properties available, potentially driving rents even higher. While the data indicates a minor dip, the overall pressure on the rental market remains significant, and the situation could worsen as supply continues to shrink.