Average Rent Up to 9.2% in UK Property Market

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Rents Continue to Rise Across the UK Amid Sustained Tenant Demand

According to new data, the average UK rent continues to grow at a steady pace, influenced by tenant demand and supply issues.

Today, we’re looking at that data in more detail, helping investors learn more about buy-to-let property investments.

Read on for more information.

Find Out More: What are the costs of running a buy-to-let? Check out our guides on buy-to-let costs, understanding tax on buy-to-let, and more.

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What Is the Latest Regarding Rents in the UK Property Market?

According to the Office for National Statistics, the average private rent in the UK went up by 9.2% in the 12 months leading to March 2024 (provisional estimate). This surpassed the 9.0% increase in the 12 months leading to February 2024 (revised estimate). It marks the highest yearly percentage change since the UK started recording this data series in January 2015.

It is worth noting that the UK House Price Index shows negative price growth for property prices in February 2024, indicating that buy-to-let investors may see increasing rental yields in some areas, particularly where tenant demand is high and property prices are affordable, such as Liverpool.

Following the March 2024 UK Residential Market Survey, the Royal Institution of Chartered Surveyors (RICS) reported an increase in tenant demand and, for the 20th consecutive month, a decrease in the volume of new landlord instructions. Due to this imbalance, respondents from RICS anticipate further rent increases in the upcoming months.

Discover More: Read our guides on buying a second property to rent and property developments in Liverpool for more insights.

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What Is the Average Rent in the UK Property Market According to the ONS?

In March 2024, the average private rent in Great Britain stood at £1,246, marking a £104 (9.1%) increase compared to the previous year.

England’s average private rent reached £1,285 in March 2024, showing a 9.1% (£107) rise from the previous year. This surge represents the highest yearly increase since data collection began in 2006, up from 8.8% in February 2024.

The average private rent in Wales was £727 in March 2024, reflecting a 9.0% (£60) increase from the previous year. Although this yearly increase matches the rate seen in the 12 months leading to February 2024, it remains below the record-high annual rise of 9.8% in November 2023, the highest since data collection began in 2010.

Scotland recorded an average private rent of £947 in March 2024, marking a 10.5% (£90) increase from the previous year. This figure represents a slight decrease from the 10.9% annual increase observed in February 2024. Scotland’s annual inflation rate has been gradually declining since reaching a record high of 11.8% in August 2023, the highest since data collection began in 2012. Learn about how much stamp duty is in Scotland with our free guide.

As for Northern Ireland, data is available up to January 2024. The average private rent in Northern Ireland saw a 10.1% increase in the 12 months leading to January 2024, up from 9.3% in December 2023. This marks the highest annual rise since data collection began in 2016.

For more information on the UK buy-to-let landscape, see some of our recent buy-to-let area guides:

Author

Dale Barham

Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.