UK average rental prices continuing to rise. HomeLet’s latest Rental Index for May 2023, shows The average UK rental price has now hit £1,213, a 1.2% increase  from last month’s average of £1,199.

The London rental market in particular shows no signs of slowing down – there have only been a handful of occasions on which the monthly average has been recorded above £2,000 per calendar month, with this month’s average of £2,039 PCM going down as the highest ever recorded.

Excluding London, the average price of rent in the UK is now £1,016 up 1% from the previous month and up 9.5% from the previous year.

Scotland saw the highest monthly increase of the UK with rental averages rising by 2.6% monthly.

The UK’s cheapest rental area, the North-East, saw another dip, dropping 2% month on month to £632.  

HomeLet and Let Alliance chief executive Andy Halstead explains that rental prices remain high, which brings a level of risk for both tenants and landlords.

“We are again urging landlords to consider rent guarantee insurance as the likelihood of tenants struggling to pay their rent grows with each passing month”.

He adds: “The fact that the London market is rising in terms of average price while the cheapest area in the country (North-East of England) is falling shows that the level of demand somewhat depends on location, but as a broad rule, there is a shortage of rental properties to meet demand, with many prospective tenants facing a real battle to secure a property.

“This frenzied market is likely to see prices continue to rise in the coming months.”