New data from Hamptons shows the average monthly rent in Great Britain has risen to £1,304, a 12.0% increase compared to last year. This is the fastest annual growth rate since the index’s inception in 2014.
Last month marked a significant milestone as the average rent in Great Britain surpassed the £1,300 per calendar month threshold for the first time, 11 months after it went past the £1,200 mark.
Scotland saw a historic increase of 13.4% in rents last month, pushing the average rent above that in the Midlands for the first time. Meanwhile, London rents have been steadily increasing at a double-digit rate in 16 of the last 18 months, costing tenants an additional £5,508 per year on average.
Aneisha Beveridge, head of research at Hamptons, noted the considerable shifts in the rental market. “Each passing month has ushered in a new rental market record. Rents have risen more in the last 12 months than they did between 2015 and 2019,” said Beveridge.
Beveridge further commented on the financial pressure for both tenants and landlords: “While the current pace of rental growth is unsustainable long term, many mortgaged landlords are being squeezed just as tightly as tenants. Higher rents are only going some way towards helping mortgaged landlords’ balance their books, rather than boosting their profit.”
The recent data indicates that rental homes on the market increased by 30% compared to last year’s numbers. Despite this increase, rental home availability is still 39% below the levels seen in 2019, hinting at a longer-term decline in rental stock which is expected to continue affecting rental growth rates.
