Tenants are now paying nearly 10% more in rent despite the UK average rental price decreasing by 0.3%.
Data from HomeLet Rental Index shows that rents in many regions have decreased from October to November.
And that tenants are paying out hundreds of pounds more each month compared to this time last year.
The average UK tenant can now expect to pay £1,279 per month for their rent, a staggering £221 more every month than what the post-Covid rental market offered in December 2021.
Across the country average monthly rent is up just under 9% (8.85%) compared to the end of 2022.
The data shows that as rising prices fail to match wage increases for many, tenants in the UK are paying nearly a third (33.2%) of their wages on rent. This is a 2.1% increase compared to last year.
In the capital, people can expect to pay nearly two-fifths (39.3%) of their wages in rental costs. This is despite the support announced for tenants by Prime Minister Rishi Sunak in the autumn budget.
The average rent in the UK decreased month on month from October by -0.3% and now sits at £1,279pcm or £2,174pcm in London.
There was a negative variance for most regions in the country excluding Wales, West Midlands, and the East of England. These regions saw a mean average +0.5% monthly increase.
HomeLet said its data give a stark view into the reality of the cost-of-living crisis in the UK.
The index, which is released monthly and analyses archived rents, utilises data from over 1 million references processed each year on behalf of the UK’s letting agents. It represents the up-to-date view on the UK’s private rented sector.
HomeLet & Let Alliance chief executive Andy Halstead said: “Despite huge yearly increases, our November data actually reports a dip in monthly rent prices across most regions compared to October. Rent is down -0.3% across the UK from last month and as much as -3.2% in Scotland, which also saw a decrease last month.
“I hope this is a sign of more positive movement in the market on the horizon, as spiralling costs are beneficial for neither landlord nor tenant; and we strive to support both. 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.”
