Cushman-Wakefield-Q4-2022-BTR-Report
RENTAL PERFORMANCE
RENTAL MARKET OVERVIEW
AVERAGE MONTHLY RENTS
Throughout 2022, the UK has experienced strong rental growth , largely driven by the ongoing imbalance between supply and demand . The RICS December 2022 residential survey showed a net balance of +28% of respondents reporting an increase in demand in December ( albeit the least elevated f gure since February 2021). New rental supply continued to fall , with a net balance of -24% of respondents reporting a decline in landlord instructions . Rents in the UK excluding London increased from £893 pcm in December 2021 to £977 pcm in December 2022, a 9.4% annual increase . In London , where the supply - demand imbalance has been much greater , rents increased from £1,752 pcm to £2,007 pcm , an annual increase of 14.6%. Annual rental growth varied across the UK , with London experiencing the largest annual growth (14.6%), followed by Scotland (13.8%) and the North West (11.1%). Yorkshire and the Humber (7.2%), Northern Ireland (6.9%) and the North East (6.6%) all experienced the lowest growth , albeit still healthy . In December 2022, some regions experienced a small monthly decline in rent . Whether this is a seasonal e f ect will become clearer in January 2023, but the supply crisis makes a strong case for rents remaining strong in 2023.
£2,000
£1,800
£1,600
£1,400
£1,200
£1,000
£800
Jun -21
Aug -21
Feb -21
Dec -21
Oct -21
Apr -21
Apr -19
Jun -19
Aug -19
Feb -19
Dec -19
Oct -19
Dec -22
Apr -22
Jun -22
Aug -22
Feb -22
Oct -22
Aug -20
Feb -20
Dec -20
Apr -20
Jun -20
Oct -20
UK Excluding London London
ANNUAL RENTAL GROWTH
6.6%
North East
6.9%
Northern Ireland
7.2%
Yorkshire & Humberside
7.4%
East Midlands
7.5%
East Of England
9.2%
Wales
Type something
Average rent in the UK excluding London £977 per month 9.4% Increase from December 2021
10.0%
South East
10.0%
South West
10.9%
West Midlands
11.1%
North West
13.8%
Scotland
14.6%
Greater London
Source: Cushman & Wakefield, RICS, Homelet Rental Index
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