Rents are still going up across the UK. But with tenant demand slowing and fewer properties coming onto the market, is this about to change? Read on for the facts and figures every landlord needs to know.

UK Rent Prices Still Climbing in 2024

The latest figures from the ONS show that renting out your property is still a pretty good way to make money in 2024. Across the UK, private rents shot up by 8.6% in the year to July 2024. That means if you were charging £1,000 a month for rent last year, you could be looking at an extra £86 a month now – that’s an extra £1,032 a year!

However, before you crack open the champagne, there are signs that the market might be cooling down a bit. This 8.6% rise is the same as the previous month, and lower than the record-breaking 9.2% increase we saw back in March.

Is the Tide Turning for Landlords?

The Royal Institution of Chartered Surveyors (RICS) think the number of properties available to rent is dropping because fewer landlords are putting their homes on the rental market. At the same time, although demand from renters is still there, it’s not growing as fast as it was.

What does this mean for you? Well, it could mean that the days of high rent increases are coming to an end.

Where Are Rents Rising Fastest?

Here’s a breakdown of average rent increases and prices across the UK:

England:

• Average rent (July 2024): £1,319 (up 8.6% compared to last year)
• Highest rent increase:London (9.7%)
• Lowest rent increase:North East (6.1%)

Wales:

• Average rent (July 2024): £748 (up 7.9% compared to last year)

Scotland:

• Average rent (July 2024): £965 (up 8.2% compared to last year)

Northern Ireland:

• Average rent (May 2024): Data still being collected, but rents rose by 10% in the year to May 2024.

Most Expensive Rental Hotspots:

• Kensington and Chelsea, London: A cool £3,411 per month
• (Outside London) Elmbridge, South East: £1,810 per month

Cheapest Place to Rent:

• Dumfries and Galloway, Scotland: £483 per month

What Type of Property Should You Invest In?

If you’re thinking about investing in a buy-to-let, here’s what you need to know about different property types:

• Detached houses: Command the highest rents at an average of £1,478 per month.
• Flats and maisonettes: More affordable, with an average rent of £1,244 per month.
• Bigger is better: Properties with four bedrooms or more have an average rent of £1,949
• One-beds still in demand: You can expect to get around £1,024 per month for a one-bedroom property.

What’s Next for the UK Rental Market?

While the rental market is still looking good for landlords, the latest figures suggest that things might be about to change. Keep an eye out for our next update to make sure you stay ahead of the game.