UK Rent Growth Slows, Falling in Line with Inflation

Rents are falling in line with the cost of living, according to the latest official data shows.

Although rents increased 8.4 per cent in the year to September 2024, the increase was the same as the annual rise for August and below the record high of 9.2 per cent in March.

Rent rises echo the path of inflation, which peaked at 9.3 per cent in April and March 2024 and has since dropped off.

The Office for National Statistics data for September shows the average rent in England is £1,336.

Tenants in Wales pay £760, while the average rent in Scotland is £973.

London rents drop fastest

The rate of rent increases is expected to fall further as this month's inflation figure dipped below the Bank of England's 3 per cent target to 2.6 per cent.

In the past 12 months, rents rose the fastest in London (9.8 per cent) and the slowest in the South West and Yorkshire and The Humber (6.3 per cent).

Rent data from Homelet, the country's largest tenant referencing agency, states that the average rent was £1,331 in September, but it plots rents rising by 4.3 per cent over the year.

Rents in London remain the highest in the UK - averaging £2,201 monthly - while the lowest rents are in the North-East, where tenants pay an average of £715 monthly.

In London, rents are rising fast in the south-east borough of Bromley (+13.5 per cent), while the largest falls are in Hammersmith, Fulham, Kensington and Chelsea (dropping 8.9 per cent).

However, rents in several UK regions have dropped and those in the North West are standing still.

The Homelet report says: "While rents have recorded a monthly increase in most months of 2024, the rates are lower than in recent years. As a result, the annual growth rate is the slowest since May 2021."

How UK rents have changed in a year

Region	Rent Sept 2024	Rent Aug 2024	Rent Sept 2023	Monthly Change	Yearly Change
East Midlands	£887	£892	£859	-0.60%	3.30%
East of England	£1,309	£1,302	£1,208	0.50%	8.40%
London	£2,201	£2,148	£2,179	2.40%	1.00%
North East	£720	£715	£668	0.70%	7.80%
North West	£1,068	£1,068	£1,006	0.00%	6.20%
Scotland	£1,001	£1,018	£977	-1.70%	2.50%
South East	£1,431	£1,439	£1,359	-0.60%	5.30%
South West	£1,213	£1,215	£1,139	-0.20%	6.50%
Wales	£914	£905	£852	1.00%	7.30%
West Midlands	£1,014	£1,016	£933	-0.20%	8.70%
Yorkshire and Humberside	£898	£889	£866	1.00%	3.70%
UK average	£1,331	£1,325	£1,276	0.50%	4.30%
UK average, excluding London	£1,124	£1,126	£1,061	-0.20%	5.90%

Source: Homelet

Meanwhile, letting agents say a growing number of prospective tenants are looking for homes to rent, but landlords are bringing fewer properties to market. They argue this will lead to rents rising over the next three months.