UK Rents Soar by 8.6% Annually According to Official Figures

According to the latest ONS figures, the average UK private rent has increased by 8.6% year-on-year in June 2024. The average monthly rent now stands at £1271, which is £101 higher than 12 months ago.

This is slightly down from the 8.7% annual growth the month before. The highest yearly spike in UK rents was recorded in March 2024, when they increased by 9.2% on average.

These June figures come from the latest Price Index of Private Rents (PIPR), which gives official government data concerning private rent inflation for new and existing tenancies. These trends are key information for buy-to-let investors. To learn more about industry conditions that can affect investors, take a look at our property investment guide.

The Royal Institution of Chartered Surveyors (RICS) has reported that tenant demand increased during June while the new landlord instructions net balance decreased. They say this indicates a renewed decline in rental listings in the current private rental sector.

This worsening supply-demand imbalance explains why rental inflation is still so high despite a decrease in rate from the record highs recorded last year and earlier this year.

Without an influx of new properties on the market, the ONS report suggests that this imbalance is likely to continue, further pushing up average rents in the UK for the foreseeable future.