The average rent in the UK is now £1,175 per calendar month (pcm), increasing 0.3% from last month’s average of £1,172pcm, the latest HomeLet Rental Index shows.

When London is excluded, the average rent in the UK is £983pcm, up 0.6% from the previous month.

Northern Ireland saw the largest monthly variance, experiencing a 1.8% increase from last month, with average rents rising to £786pcm.

London rental prices continue to drop as the region saw the most significant monthly decrease, with rents falling by 0.7%, dropping below their previous average of £1,989pcm to £1,975pcm.

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.

Andy Halstead, HomeLet & Let Alliance CEO, said: “A small decline in rental prices at the start of 2023 has not continued, with the average rental property in the UK again seeing a price rise.

“Something interesting is happening in the capital, though, as the average rent in Greater London has decreased for the third month in a row, having briefly climbed above the £2,000pcm mark in November for the first time ever. It is still a little early to predict whether this will be a sustained pattern or whether London will follow the pattern of the wider country and see prices rise again in the coming months.

“As a wider point, the rental market continues to suffer from a lack of available properties to meet surging demand, with many landlords choosing to leave the market. If the number of properties available fails to increase in line with demand, then prices will inevitably remain high and climb even higher as the battle between tenants to secure a property intensifies.”