HomeLet Rental Index
Key headlines
• When London is excluded, the average UK rental value was £744pcm - this is 4.8% higher than the same period last year (£710pcm)
• Average rental values have increased in ten out of twelve regions in the UK,
compared to the same period last year
• The North West (-3.2%) has seen a continued reduction in rental values over
the last 8 months
• Average rents for new tenancies in London are 7.7% higher than the same
period last year
• Annually rents for new tenancies in Greater London are up by 7.7%, this rate of increase is lower than last year (10.3%)
February 2016 edition
HomeLet Rental Index provides comprehensive and up to date data on new tenancies in the UK. As part of the referencing process for around 350,000
prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property together
with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged
in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. All rental and income amounts are an average taken over
the three months preceding February. The annual change is calculated as an average for the latest three months compared with the same period a year earlier.
Average rental values
Annual variance in average rent for Greater London
and the UK (excluding Greater London)
Greater London
16%
UK excluding Greater London
Annual variance (%)
12%
8%
4%
0%
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Time (month)
It’s interesting to note…
•The average UK rental value excluding London was £744pcm - this is 4.8% higher than
last year (£710pcm)
•Rents in Greater London are up by 7.7% against last year, which is a small increase on
January 2016 (6.2%) and a reduction on February 2015 (10.3%)
•The rest of the UK is up by 4.8% against last year, which is a small reduction on January
2016 (5.5%) and comparable to February 2015 (4.7%)
•Outside London, the highest levels of annual increase have been seen in East Midlands
(6.7%), South East (6.5%), East Anglia (4.4%) and South West (4.0%)
•The North West (-3.2%) has seen a continued reduction in rental values over the last
8 months
UK region
al breakdo
wn
All rental
amounts
preceding
are an averag
the date
e taken
shown.
In detail...
over the
three month
s
Averagerentd
fromprevious ecreased
year
Averagerenti
onpreviousyencreased
ar
Scotland
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
1.0%
£625
Yorkshire
3.9%
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
£618
£626
-1.2%
£613
0.8%
£636
East Midl
1.8%
ands
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
£657
-3.2%
West Midl
ands
£637
£646
-1.3%
£598
£659
6.7%
£663
East Angl
-0.6%
ia
£642
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
2.6%
Wales
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
£596
£793
£784
1.2%
£760
4.4%
£595
Greater
0.2%
£576
£584
£582
0.4%
£571
2.2%
Figuresarerou
cimalplace
London
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
3.4%
Irela
ndedtoonede
ber
£624
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
Northern
and Hum
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
North Wes
nd
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
UK exclu
ding
London avera
Averagerentt
ge
oFeb2016
Averagerentt
£744
oJan2016
Monthlyvaria
£740
nce
Averagerentt
0.5%
oFeb2015
Annualvarian
£710
ce
4.8%
£519
£528
-1.7%
£533
-2.6%
£649
£643
t
The full regional breakdown
can be seen on page four
North East
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
South Wes
£1,521
£1,510
0.8%
£1,413
7.7%
t
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
£865
£852
1.5%
£832
4.0%
South East
Averagerentt
oFeb2016
Averagerentt
oJan2016
Monthlyvaria
nce
Averagerentt
oFeb2015
Annualvarian
ce
£938
£933
0.5%
£881
6.5%
Pagefour
Page one
Average rental values with annual comparison
UK excluding Greater London
775
+4.8%
Average monthly rent (£)
750
725
+4.7%
700
+2.4%
+1.4%
675
650
3 months to
Feb 12
3 months to
Feb 13
3 months to
Feb 14
3 months to
Feb 15
3 months to
Feb 16
Greater London
£1,600
+7.7%
£1,500
Average monthly rent (£)
+10.3%
£1,400
+4.1%
£1,300
+7.2%
£1,200
£1,100
3 months to
Feb 12
3 months to
Feb 13
3 months to
Feb 14
3 months to
Feb 15
3 months to
Feb 16
The figures also show…
• The annual growth in average rental values in the UK excluding London (4.8%) was
higher than 2015 (4.7%) and 2014 (2.4%)
• The annual growth in average rental values in Greater London (7.7%) was lower than
2015 (10.3%)
Page two
Greater London v. the rest of the UK
Monthly variation between Greater London rental prices
and the UK average (excluding Greater London)
110%
Variation in average rental amounts (%)
100%
90%
80%
70%
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Time (month)
The figures also show…
• In February 2016 average rental values in London (£1,521) were 104% higher than the
rest of the UK (£744)
• In February 2016 average rental values in London were 104% higher than the rest of the UK;
this is an increase on February 2015 (99%) and February 2014 (89%)
• In February 2014 average rental values in London (£1,281) were 89% higher than the
rest of the UK (£678)
• The variation between London and the rest of the UK has reduced since a peak in
September 2015
Page three
UK regional breakdown
All rental amounts are an average taken over the three months
preceding the date shown.
Average rent decreased
from previous year
Average rent increased on previous year
North East
UK excluding London average
Average rent to Feb 2016
£519
Average rent to Feb 2016
£744
Average rent to Jan 2016
£528
Average rent to Jan 2016
£740
Monthly variance
-1.7%
Monthly variance
0.5%
Average rent to Feb 2015
£533
Average rent to Feb 2015
£710
Annual variance
-2.6%
Annual variance
4.8%
Scotland
Average rent to Feb 2016
£649
Average rent to Jan 2016
£643
Yorkshire and Humber
Monthly variance
1.0%
Average rent to Feb 2016
£618
Average rent to Feb 2015
£625
Average rent to Jan 2016
£626
Annual variance
3.9%
Monthly variance
-1.2%
Average rent to Feb 2015
£613
Annual variance
0.8%
East Midlands
North West
Average rent to Feb 2016
£636
Average rent to Feb 2016
£637
Average rent to Jan 2016
£624
Average rent to Jan 2016
£646
Monthly variance
1.8%
Monthly variance
-1.3%
Average rent to Feb 2015
£657
Average rent to Feb 2015
£598
Annual variance
-3.2%
Annual variance
6.7%
West Midlands
East Anglia
Average rent to Feb 2016
£659
Average rent to Feb 2016
£793
Average rent to Jan 2016
£663
Average rent to Jan 2016
£784
Monthly variance
-0.6%
Monthly variance
1.2%
Average rent to Feb 2015
£642
Average rent to Feb 2015
£760
Annual variance
2.6%
Annual variance
4.4%
Wales
Greater London
Average rent to Feb 2016
£596
Average rent to Feb 2016
£1,521
Average rent to Jan 2016
£595
Average rent to Jan 2016
£1,510
Monthly variance
0.2%
Monthly variance
0.8%
Average rent to Feb 2015
£576
Average rent to Feb 2015
£1,413
Annual variance
3.4%
Annual variance
7.7%
Northern Ireland
South West
South East
Average rent to Feb 2016
£584
Average rent to Feb 2016
£865
Average rent to Feb 2016
£938
Average rent to Jan 2016
£582
Average rent to Jan 2016
£852
Average rent to Jan 2016
£933
Monthly variance
0.4%
Monthly variance
1.5%
Monthly variance
0.5%
Average rent to Feb 2015
£571
Average rent to Feb 2015
£832
Average rent to Feb 2015
£881
Annual variance
2.2%
Annual variance
4.0%
Annual variance
6.5%
Figures are rounded to one decimal place
Page four
About the HomeLet Rental Index
As well as information on rental amounts, the HomeLet Rental Index also provides
information on tenant demographics, such as their average age, income, previous residential
status and the property type they’re applying to live in.
Data is gathered from our tenant referencing service, and our rental amounts are based on
actual achieved rental prices with accurate tenancy start dates in a reported month, rather
than advertised costs. We reference up to 1,700 applicants every day – so information in the
report is comprehensive, accurate and up to date.
The data used in the HomeLet Rental Index is aggregated to local authority, county, city
and regional level only. This ensures that all property or individual records remain strictly
anonymous.
HomeLet Rental Index is prepared from information that we consider is collated with careful
attention, but we do not make any statement as to its accuracy or completeness. We reserve
the right to vary our methodology and to edit or discontinue/withdraw this, or any other
report.
About HomeLet
With more than 20 years in the industry, HomeLet is one of the leading sources of support
for the UK’s vibrant private rented sector. Part of the Barbon Insurance Group, we’re based
in Lincoln, with more than 300 members of staff working hard every day to support letting
agents, landlords and tenants.
Visit:
homelet.co.uk/homelet-rental-index
For media enquiries relating to the HomeLet Rental Index please email mediaenquiries@homelet.co.uk
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HL4320 03/16
For information regarding the HomeLet Rental Index please email rentalindex@homelet.co.uk