Table Of Content
PIPR produces rent prices that are comparable over time (unlike PRMS) and publishes at increased geographic granularity than IPHRP. By chain-linking the IPHRP (pre-2015) and PIPR (2015 onward) indices together, we have published a full historical series for the UK, Great Britain, its countries and English regions. Series begin in January 2005 for England, January 2009 for Wales, January 2011 for Scotland, and January 2015 for Northern Ireland and the UK. We advise caution when comparing pre-2015 trends with later estimates because of the methodology change in January 2015. In March 2024, the average private rent was highest in Kensington and Chelsea, London (£3,305), and lowest in Dumfries and Galloway, Scotland (£475).
Measuring the data
Average private rent for Scotland was £947 in March 2024, up 10.5% (£90) from a year earlier. Scotland's annual inflation rate has been generally slowing since the record-high annual rise of 11.8% in August 2023, which was the highest annual rise since this series began in 2012. The Price Index of Private Rents (PIPR) is released as official statistics in development, and is subject to revisions if improvements in the methodology are identified.
Figure 1: UK rents inflation is rising to record-highs, while UK house price annual inflation remains negative
This was up from 5.7% in February 2024, and represents the joint-highest annual percentage change since this series began in January 2006. Because of differences in data collection and housing policy, caution is advised when comparing Scotland's estimates with other areas in England and Wales and within Scotland. More information is available in our PIPR Quality and Methodology Information (QMI). Inflation is the rate at which prices (for renting or purchasing property) rise and fall over time. In their March 2024 UK Residential Market Survey, the Royal Institution of Chartered Surveyors (RICS) reported rising tenant demand and, for the 20th consecutive month, declining volume of new landlord instructions. Because of this imbalance, their respondents continue to expect rents to rise over the coming months.
Administrative data
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Shared ownership: a low-cost way to buy a home – but is there a catch?.
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Rent Officers receive a notification 12 months after a property's last update, supporting their aims to revisit properties. In March and April 2024, UK HPI estimates were revised from January 2021 onwards by making use of price data processed outside the UK HPI's normal 12-month revision period. Users should be aware that revisions may be larger than usual and should note the significantly greater uncertainty around new build prices.
Private rent price by property size
This was up from a decrease of 1.3% in the 12 months to January 2024 (revised estimate). The Price Index of Private Rents (PIPR) reflects price changes for all privately-rented properties (including for existing tenancies), not only changes for newly-advertised lets. Each subsequent month, updated Northern Ireland data are used to revise estimates for the UK. This means that there is a two-month revision period for the UK series in PIPR. The Cost of Living (Tenant Protection) Scotland Act capped in-tenancy rent price increases at 0% (and up to 3% in certain circumstances) from September 2022 until 31 March 2023. Between 1 April 2023 and 31 March 2024, this rent price-increase cap was 3% (and up to 6% in certain circumstances).
Average private rent was highest for properties with four or more bedrooms (£1,912) and lowest for properties with one bedroom (£995). In March 2024, the average monthly private rent was highest in London (£2,055) and lowest in the North East (£662). Annual rents inflation was lowest in the North East, at 6.1% in March 2024.
Private rent and house price inflation
Average private rent in Northern Ireland increased by 10.1% in the 12 months to January 2024, up from 9.3% in December 2023. Our new local housing statistics tool summarises the latest private rents and house price statistics for local areas. To produce provisional UK statistics, Great Britain's inflation rate for the latest two months has been used to estimate Northern Ireland's inflation rate in this period. Since the Price Index of Private Rents (PIPR) measures rent price changes of the entire privately-rented stock, changes in new-let annual inflation from supply and demand pressures take time to be reflected in PIPR.
The rise in Scotland’s annual inflation rate in recent months is more reflective of Scotland’s average house price falling this time last year, rather than increasing in recent months. This is known as a base effect, as explained in our Beware base effects blog. Scotland's average house price fell in winter 2022 to 2023, reaching a low point in February 2023. Scotland's average house price returned to mid-2022 price levels by mid-2023 and has since remained comparatively stable. This new release uses the Price Index of Private Rents (PIPR) to provide more insight into the UK private rental sector and includes headline UK HPI statistics.
UK HPI will now return to the usual 12-month revision period for future releases. Average private rent for Wales was £727 in March 2024, up 9.0% (£60) from a year earlier. This annual rise was unchanged from the 12 months to February 2024, but remains below Wales's record-high annual rise of 9.8% in November 2023, which was the highest annual rise since this series began in 2010. These caps and restrictions will not be reflected in the price of new lets used to estimate the price of existing tenancies.
The full UK House Price Index report and monthly data are published by HM Land Registry. Estimates for the City of London and Isles of Scilly are not published because of low collection volumes.
Average house prices increased by 1.4% to £178,000 in the year to Quarter 4 (Oct to Dec) 2023 in Northern Ireland. Average UK private rent increased by 9.2% in the 12 months to March 2024 (provisional estimate). This was up from 9.0% in the 12 months to February 2024 (revised estimate) and represents the highest annual percentage change since this UK data series began in January 2015.
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