New figures from the HomeLet Rental Index show the average monthly rent across the UK increased to £1,340 in May, up 1.1% from £1,325 in April. Compared with the same month last year, rents were 2.5% higher.
Outside London, rents also moved upwards, with the average reaching £1,146 per month. That represents a 1.0% monthly increase and annual growth of 2.0%, suggesting rental inflation remains embedded across much of the country rather than being driven solely by the capital and reflecting continued supply constraints.
London continued to record stronger growth than the national average. Average rents in the capital rose to £2,161 in May, up 1.6% month-on-month and 3.5% higher than a year earlier.
The regional picture points to broad-based rental growth. Ten of the UK’s twelve regions saw rents increase during the month, with one region unchanged and only one recording a decline.
Scotland posted the strongest monthly growth at 1.9% and also led annual increases, with rents rising 3.9% year-on-year. Greater London and the North East both recorded annual growth of 3.5%, while the East of England matched London for monthly increases at 1.6%.
The latest figures suggest that, despite affordability pressures, a continued rental supply shortage is helping to support rental values across much of the market as competition for available homes remains elevated.
Jo Dickens, head of business development at HomeLet and Let Alliance, said: “May’s data underlines that, while the pace of growth remains measured, rents are still edging upwards across much of the UK.
“Affordability remains a key concern for tenants, so the modest, incremental increases we’re seeing will be felt. The priority for agents and landlords remains sustainable tenancies – balancing fair market rents with what tenants can realistically afford.
“Robust fraud prevention through our referencing, coupled with Rent Guarantee insurance, continues to play a crucial role in supporting stable tenancies, protecting landlord income and helping to manage risk in a market that remains finely balanced.”
