Over the last 12 months rents have increased by £38 to a national average of £818. The extensive growth is partly being driven by an increased demand for detached housing as tenants prioritise increased space and gardens as a result of the pandemic.
Matt Trevett, Managing Director of The DPS said “Tenants are still prioritizing more living space and are willing to pay for it. Tenants are staying in detached properties for longer and this combined with lower availability of these properties, is driving up rents.”
Regional rental growth has been widespread this quarter. All regions have experienced growth with the exception of Wales which saw a drop of nearly 1%.
Which regions saw the highest growth?
Rents across the West Midlands saw the highest quarter-on-quarter growth, climbing 4% (£26) to £671. The region was also amongst the regions with the most growth over the last 12 months however with an average rental income of £549 it remains amongst the cheapest areas in the country to rent.
Despite sitting high on the list of regions with highest average rents in the UK, rental growth in the South West continues to outpace the national average. Year on year rents have increased nearly 7% to £815.
Rents this quarter climbed over 7% to £876 in the East. The region has seen rental growth across all property types but most notably across its detached stock. With this being said, according to DPS salaries in the region average £31,044 which means tenants can expect to contribute more than 34% of their income towards rent which is way above the national average.
London’s falling? Not anymore
The Capital has clawed back some of the falls experienced over the past few quarters, bringing the region to a level of year-on-year rental growth of 1.3%. Rent here will set you back an average of £1,339.
Rents in the Capital were previously being dragged down by boroughs such as Westminster and Hammersmith, which were experiencing double-digit decreases in rental income. Finally, it seems the Capital is bouncing back.
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