A prominent lettings industry figure has summed up the continuing rental market frenzy in three words – “the madness continues.”

Andy Halstead, HomeLet & Let Alliance chief executive officer, made the comments following the publication of HomeLet’s latest rental market index.

Halstead says:  “July’s average rental price has now hit an astonishing £1,243, the highest average yet. This all-time high paired with every region of the UK seeing a month-on-month price rise is a concern for both tenants and landlords. 

“We’re edging closer and closer to a situation in which a large portion of potential tenants are simply unable to live, which is a dangerous situation for the market to be in. 

“It is worth saying that extreme rental prices does not equate to all time high margins for landlords either! Landlords being unable to rely on rental income is a terrible scenario. Investing in rent guarantee insurance is becoming the only way for landlords to properly protect themselves during this time, and we highly recommend it. 

“The North-East has been out of kilter with the rest of the UK in recent months with few price rises. However, July 2023 has seen even the North-East rise 1.8 per cent to £636 pcm. The nation-wide skyrocket in rent and mortgage increases is proof that no one is winning, when will it be put to a stop? 

“At the other end of the country, London’s average rental price towering above £2,000 pcm appears to now be the norm, a milestone that was only breached for the first time less than a year ago. Now hitting £2,109 pcm, London’s crazy rental market is mirroring the UK as a whole and shows no sign of slowing down – the madness continues!”

The figures show that the average UK rental price is now £1,243 pcm, increasing 1.1 per cent from last month.

When London is excluded the average rent is £1,037.

Scotland has hit its highest rental average yet at £973 pcm.