The monthly Index, which is released monthly and analyses archived rents to paint a picture of the UK market, is ending the year with the news that, despite decreases across many regions in the UK, prices have risen again in Wales by 0.5%.
Across the country, the situation over the year has been a bleak one, with UK tenants now paying out hundreds of pounds more each month in rental costs compared to this time last year, and more than £200 on average compared to 2021.
The HomeLet data shows that, across the country, average monthly rent is up just under 9% (8.85%) compared to the end of 2022. In a shocking reveal, average UK tenants can now expect to pay £1279pcm for their homes, a staggering £221 more every month than what the post-Covid rental market offered in December 2021.
In Wales specifically, the average rent price is now £867pcm and this is around 32.5% of monthly wages. Despite the support announced for tenants by Prime Minister Rishi Sunak in the autumn budget, HomeLet’s figures give a stark view into the reality of the cost of living crisis in the UK. Rising prices fail to match wage increases for many and the situation is beginning to spiral out of control.
Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said:
“Sadly, despite a drop in many regions across the UK, our HomeLet Rental Index reports that rental prices in Wales have increased yet again this month, with the average tenant now expecting to pay £867pcm. Rent prices in the region have increased by 7.7% in the last year alone – we’re at record highs here and it’s an unsustainable future for both landlord and tenant.
“As a rule, rent prices are down across the UK (-0.3% nationwide) yet have increased by 0.5% in Wales – a sign that the housing market here is not as steady as it should be. We naturally look upon this with concern, especially when we consider the exponential and unmanageable increase in average monthly rents compared to last year and the year before.
“Rent prices across the UK have increased by nearly 10% across the country in a year, and are up more than 20% in two years. Though the autumn budget announced more support for tenants, especially those in low-income households, our maths suggests it will not be nearly enough to cover rental costs and the money being forked out for bills and food – which have also gone up.
“Especially for landlords with mortgages, the outlook is bleak for some time to come. The worst outcome possible for landlords is tenants failing to pay rent, everyone loses. There has never been a more important time for landlords to protect their rental income.”
The full breakdown of rent increases, variances and rent-to-income ratios can be found on the HomeLet website. The HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK. The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK.