Rents are still rising across the UK, but there are signs that the pace of increases is slowing down, giving landlords and potential investors plenty to think about.

The latest figures show that the average rent across the UK went up by 8.7% in the year to May 2024. This means that if you were renting out a property for £1,000 per month last year, you could be charging an extra £87 per month now.

Here’s the lowdown for landlords:

• England: Average rent hit £1,301, up 8.6% – the second month in a row where the rate of increase has slowed. London saw the biggest jump (10.1%) while the North East had the smallest (6.1%).
• Wales: Rents climbed 8.5% to reach an average of £736.
• Scotland: North of the border wasn’t spared, with rents soaring by 9.3% to an average of £957.
• Northern Ireland: Landlords here are laughing all the way to the bank with a 10.3% surge in rents (up to March 2024).

Thinking of investing? Here’s where the money’s at:

• Location, location, location: Kensington and Chelsea in London boasts the highest average rent at a staggering £3,397 per month.
• Outside the Smoke: Elmbridge in the South East offers a healthy return with an average rent of £1,780.
• Bargain hunters: Dumfries and Galloway in Scotland has the lowest average rent at £480, making it an interesting prospect for savvy investors.

What’s driving these sky-high rents?

Experts say it’s a classic case of supply and demand. More and more people are looking for rental properties, but there just aren’t enough homes available. The Royal Institution of Chartered Surveyors (RICS) says this trend is set to continue.

What does this mean for landlords?

It’s good news if you’re already a landlord, as you’re likely to see a healthy return on your investment. However, it’s important to remember that these high rents can’t last forever. Keep an eye on the market and be prepared for things to slow down.

For those thinking of becoming a landlord:

Now could still be a good time to invest in property, but do your homework! Research the local market, understand the costs involved, and make sure you’re comfortable with the risks.