29th
Apr 2022
For the sixth consecutive quarter average UK rents have risen, however some renters are prepared to pay way above the asking rental price to secure a tenancy.
The Deposit Protection Service (DPS) says that average UK monthly rents are now at £849 which is £15 higher from the end of last year, and from 12 months ago there has been a £49 increase – 6.13 per cent.
The DPS’s quarterly rental index shows that London rents have risen the highest with a 2.56 per cent rise in the last quarter and in the same period last year has risen by 6.79 per cent.
During Q1 this year flats have performed the best with an average increase of 1.89 per cent.
A recently held DPS survey found that approximately 15 per cent of tenants have been prepared to pay more than the asking rental prices to secure a ‘home’.
DPS managing director Matt Trevett, says: “Consistent quarterly rent rises – coupled with survey results that suggest that a proportion of tenants are overpaying to secure a property – underline the current intense demand for, and tight supply of, rental homes in the UK.
“Rents in London are also rebounding strongly, with average rents for flats in the capital increasing by £111 or just under nine per cent during the past twelve months – more than three times the falls seen during 2020, when tenants perhaps sought out more spacious homes outside of the Capital.
“Accelerating rents for flats could signal the beginning of the end of the pandemic trend of renters leaving cities.”
Paul Fryers of a buy-to-let mortgage provider, comments: “The squeeze on rental stock is also impacting landlords, who are increasingly looking further afield to secure a suitable rental property.
“Recently we’ve seen landlords looking to Northern cities such as Manchester and Liverpool, which are the subject of recent Government investment and where more landlords believe they may find healthier yields.”
During Q1 2021 to Q1 2022 across the UK in practically all regions as 10 out of 12 have enjoyed a rise in average rents of over 4.0 per cent. West Midlands came out highest in percentage increase over the last twelve months with an average rise of 7.57 per cent.
However there were slight decreases in average rents during this year’s first quarter in the South West by only 0.12 per cent and a 0.34 decrease across Yorkshire.
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