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The £1k pcm rent has arrived

by ARPM

An average monthly rent that costs four figures has arrived for the first time. According to the latest rental index from HomeLet, reflective of the month of June 2021, the average UK rent now stands at a record-breaking £1,007 per calendar month (pcm).

The rise has been steady but more marked during the past 12 months – up 5.9% when compared to the same time in 2020, and up 7% on the same period two years ago.

Of particular interest for those who like to ‘call’ the London market is news that the capital city has posted its first price increase for more than a year. The annual rise of 1.5% takes the average London rent to £1,607 pcm – just £4 off its pre-Covid average seen in June 2019.

All 12 of the UK’s regions saw average annual rental values climb over the last year. The South West led the way, posting annual rises of +10.5%, followed by Wales (+10.4%) and the East of England (+9.6%). In terms of month-on-month rental values, nine out of the 12 regions showed additional value growth in the last four weeks.

So, have we reached the rental value limit? The team at HomeLet doesn’t think so and it expects more average rent records to be broken as we move through 2021.

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