The average monthly rent paid on newly-let homes across Britain was £125 or 11.1% higher in April than a year earlier, according to an index.
This typical monthly increase equates to an extra £1,500 being paid per year.
Average rents paid for newly-let homes reached a new high of £1,249 per month in April 2023, according to property agent Hamptons, whose lettings index has been running for just over a decade.
It said rental growth has pushed the average monthly rent on newly-let properties outside London over the £1,000 mark, at £1,002.
This came less than three years (34 months) after the average rent for the whole of Britain, including London, passed the same milestone in July 2020.
Aneisha Beveridge, head of research at Hamptons, said: “It was back in July 2020 that the average rent across the whole of Great Britain (including London) last passed the £1,000 pcm (per calendar month) mark.
With rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area— Aneisha Beveridge, Hamptons
“But just 34 months later, soaring rents since Covid have meant that the average rent in the regions outside of London has passed that same milestone.”
She added: “With rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area.
“While anyone choosing to sit tight tends to face smaller rental increases than those moving home, they are not immune.
“Affordability constraints will likely hit the brakes on rental growth at some point this year, however, it’s unlikely to slow considerably due to the number of landlords looking to pass on their rising costs.”
Hamptons’ lettings index uses data from the Countrywide Group to track changes to the cost of renting.
The index is based on 90,000 homes let and managed by Countrywide each year. It is based on rental prices paid rather than advertised rents.
Here are average monthly rents on newly-let properties in April 2023 and the annual increase in percentage and cash terms, according to Hamptons:
– Greater London, £2,210, 17.2%, £324
– East of England, £1,169, 6.2%, £68
– South East, £1,326, 8.1%, £99
– South West, £1,082, 4.0%, £41
– Midlands, £880, 9.2%, £75
– North of England, £836, 9.8%, £74
– Wales, £766, 3.7%, £27
– Scotland, £848, 12.8%, £96
– Britain, £1,249, 11.1%, £125
– Britain (excluding London), £1,002, 7.8%, £72
