HomeLet Rental Index
Key headlines
• When London is excluded, the average UK rental value was £771pcm - this is
4.4% higher than the same period last year (£738pcm)
• Average rental values have increased in eleven out of twelve regions in the UK,
compared to the same period last year
• Rents in Greater London are up by 6.2% year on year – a slight drop on last
month’s annual growth rate (7.7%)
May 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 May. 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%
Annual variance (%)
12%
9.5%
UK excluding Greater London
9.2%
6.2%
8%
7.6%
4%
4.4%
2.8%
0%
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Time (month)
It’s interesting to note…
•The average UK rental value excluding London was £771pcm - this is 4.4% higher than last
year (£738pcm)
•Greater London is up by 6.2% against last year, which is reduction on the rate of increase
seen in May 2015 (9.2%)
•The rest of the UK is up by 4.4% against last year, which is a reduction on the rate of
increase seen in May 2015 (7.6%)
•Outside London, the highest levels of annual increase have been seen in Scotland (10.6%),
the East Midlands (8.3%), Yorkshire & Humberside (7.3%) and East Anglia (7%)
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
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
2.4%
£652
Yorkshire
10.6%
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
£634
£627
1.2%
£591
7.3%
£653
East Midl
-0.8%
ands
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
£666
-1.9%
West Midl
ands
£671
£648
£646
0.3%
£599
8.3%
£659
East Angl
1.8%
ia
£648
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
3.5%
Wales
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
£609
£830
£809
2.6%
£776
7.0%
£597
Greater
2.0%
£582
£629
£608
3.4%
£598
5.2%
Figuresarerou
cimalplace
London
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
4.8%
Irela
ndedtoonede
ber
£659
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
Northern
and Hum
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
North Wes
nd
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
UK exclu
ding
London avera
Averagerentt
ge
oMay2016
Averagerentt
£771
oApr2016
Monthlyvaria
£764
nce
Averagerentt
0.8%
oMay2015
Annualvarian
£738
ce
4.4%
£542
£532
1.8%
£537
0.9%
£721
£704
t
The full regional breakdown
can be seen on page four
North East
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
South Wes
£1,563
£1,543
1.3%
£1,472
6.2%
t
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
£896
£891
0.6%
£878
2.1%
South East
Averagerentt
oMay2016
Averagerentt
oApr2016
Monthlyvaria
nce
Averagerentt
oMay2015
Annualvarian
ce
£969
£963
0.6%
£940
3.1%
Pagefour
Page one
Average rental values with annual comparison
UK excluding Greater London
800
+4.4%
Average monthly rent (£)
775
+7.6%
750
725
700
+2.8%
+0.8%
675
650
3 months to
May 12
3 months to
May 13
3 months to
May 14
3 months to
May 15
3 months to
May 16
Greater London
£1,700
+6.2%
Average monthly rent (£)
£1,600
+9.2%
£1,500
£1,400
+9.5%
£1,300
+4.5%
£1,200
£1,100
3 months to
May 12
3 months to
May 13
3 months to
May 14
3 months to
May 15
3 months to
May 16
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%
102.9%
Variation in average rental amounts (%)
99.4%
100%
96.6%
90%
80%
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Time (month)
The figures also show…
• In May 2016 average rental values in London (£1,563) were 103% higher than the rest of
the UK (£771)
• The gap between London and the rest of the UK was lower than May 2015 (99.4%) and
May 2014 (96.6%)
• 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 May 2016
£542
Average rent to May 2016
£771
Average rent to Apr 2016
£532
Average rent to Apr 2016
£764
Monthly variance
1.8%
Monthly variance
0.8%
Average rent to May 2015
£537
Average rent to May 2015
£738
Annual variance
0.9%
Annual variance
4.4%
Scotland
Average rent to May 2016
£721
Average rent to Apr 2016
£704
Yorkshire and Humber
Monthly variance
2.4%
Average rent to May 2016
£634
Average rent to May 2015
£652
Average rent to Apr 2016
£627
Annual variance
10.6%
Monthly variance
1.2%
Average rent to May 2015
£591
Annual variance
7.3%
East Midlands
North West
Average rent to May 2016
£653
Average rent to May 2016
£648
Average rent to Apr 2016
£659
Average rent to Apr 2016
£646
Monthly variance
-0.8%
Monthly variance
0.3%
Average rent to May 2015
£666
Average rent to May 2015
£599
Annual variance
-1.9%
Annual variance
8.3%
West Midlands
East Anglia
Average rent to May 2016
£671
Average rent to May 2016
£830
Average rent to Apr 2016
£659
Average rent to Apr 2016
£809
Monthly variance
1.8%
Monthly variance
2.6%
Average rent to May 2015
£648
Average rent to May 2015
£776
Annual variance
3.5%
Annual variance
7.0%
Wales
Greater London
Average rent to May 2016
£609
Average rent to May 2016
£1,563
Average rent to Apr 2016
£597
Average rent to Apr 2016
£1,543
Monthly variance
2.0%
Monthly variance
1.3%
Average rent to May 2015
£582
Average rent to May 2015
£1,472
Annual variance
4.8%
Annual variance
6.2%
Northern Ireland
South West
South East
Average rent to May 2016
£629
Average rent to May 2016
£896
Average rent to May 2016
£969
Average rent to Apr 2016
£608
Average rent to Apr 2016
£891
Average rent to Apr 2016
£963
Monthly variance
3.4%
Monthly variance
0.6%
Monthly variance
0.6%
Average rent to May 2015
£598
Average rent to May 2015
£878
Average rent to May 2015
£940
Annual variance
5.2%
Annual variance
2.1%
Annual variance
3.1%
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
Follow @homelet on Twitter or find us at facebook.com/homelet
HL4455 06/16
For information regarding the HomeLet Rental Index please email rentalindex@homelet.co.uk