The latest figures from the ONS’ Price Index of Private Rents (PIPR) are in, and while they show a slight slowdown in rent growth, it’s not exactly cause for panic just yet.

Rent Increases Still a Reality

The average private rent in the UK jumped by a hefty 8.6% in the year leading up to June 2024. This is a slight decrease from the 8.7% increase seen in May, but still a significant jump.

Regional Differences

The picture across the UK varies, with London leading the charge with a 9.7% increase. The North East experienced the lowest increase, at 5.9%.

Looking at the Numbers

• England: Average rent hit £1,310, up 8.6% from last year.
• Wales: The average rent was £743, a rise of 8.2%.
• Scotland: The average rent was £959, up 8.4%.
• Northern Ireland: The average rent increased by 10.3% in the year to April 2024.

London continues to be the hot spot for landlords, with the highest average rent at £2,098. Outside of London, Elmbridge in the South East boasts the highest average rent at £1,797.

Property Size Matters

Detached properties offer the highest average rent at £1,469, while flats and maisonettes are the lowest at £1,236. For those looking for a larger return, properties with four or more bedrooms command the highest average rent at £1,940.

What’s Driving the Market?

The Royal Institution of Chartered Surveyors (RICS) reports increased tenant demand, but a decrease in the number of properties available for rent. This suggests that the rental market is tightening, which is likely to keep rents high.

Important Things to Remember

It’s crucial to remember that these figures reflect the average. Individual property prices can vary significantly depending on location, size, and condition.

Final Thoughts

While the rate of increase has slowed slightly, the UK rental market remains strong, offering opportunities for landlords who are prepared to research. Keep a close eye on these trends and adjust your strategies accordingly to ensure you stay ahead of the curve.