Brand new data, released by HomeLet, reveals rent prices across the country generally saw a decrease from November to December 2023. In the East Midlands, however, rent prices have continued to rise.

Though only a minor increase this month, figures have consistently risen over the last two months, and by nearly +10% (+9.79%) since this time last year.

The HomeLet Rental Index, which is released monthly and analyses archived rents to paint a general picture of the UK market, is beginning the year with negative news for the East Midlands, the only region this month to see an increase in its rental costs.

In all other regions across the UK, figures have fallen, many of which for the second month consecutively. Despite the troubling figures for the East Midlands, it is thought by HomeLet that the data indicates that the country as a whole could now have surpassed peaking rental costs, and prices should now plateau following a turbulent year. 

CEO Andy Halstead says there could be "troubling times ahead" for East Midland's renters.

However, prices have soared in the East Midlands by +9.79% since December 2022, and a staggering +17.9% in two years. It's predicted that 29.6% of monthly incomes are forked out on rent in the region, a +0.2% increase from this time last year, indicating a slight mismatch with inflation and wage rises.

Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer has mixed feelings, saying: "It's bad news for the East Midlands, I'm afraid. As we report a nationwide drop in monthly rental prices, this is the only region to see another increase – indicating potentially troubling times ahead for local renters. 

"Rental prices are up in the region by 0.3%, meaning the average tenant can expect to pay around £875pcm now in rent. In just two years, these figures have increased by £133. Costs that are not reflected in wage increases for many. Now, in the region, renters can expect to pay out around 30% (29.6%) of their monthly pay packet directly on rent.

"We're at a place now, due to inflation and the country's financial crises, that it's unlikely we'll ever see rental prices drop to the rates they were at when we were just exiting the Covid-19 pandemic. The impact of that, alongside questionable budget decisions and overall weak management of British finances, means that we estimate by this time in 2025, rent increases of between 5% – 10% won't be surprising. 

"The bleak picture painted in the East Midlands is one we really do hope won't begin to be reflected nationwide. We hope to see further decreases across the country and in this region particularly, which needs the boost after MoM figures have not been kind. Whether this will happen though is yet to be seen. We wait with bated breath to review the figures next month and hope for better news for your renters."

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.