Posts with tag: rent prices

Student accommodation rent prices are up as much as 26% in parts of Britain

Published On: October 7, 2021 at 8:37 am

Tags: Manor Interiors,rent prices,student accommodation

Student accommodation rent prices are up as much as 26% in parts of Britain

Research from Manor Interiors shows that the cost of renting for a student has increased by as much as 26% in some places.

The expert in build-to-rent furnishing solutions has found that the average student in Britain currently pays £132 per week in rent. In London this reaches as high as £152 per week.

However, when analysing the cost of renting for students over the last five years, Manor Interiors found that London is one of just two regions to see the cost paid per week actually fall. In 2017, the average London student paid £182 per week in rent but this has since fallen to £152 per week, showing a 16% drop.

Students in Scotland have seen a -2% decline in rent costs, resulting in them now paying an average of £127 per week.

Meanwhile, students in the East Midlands have seen the largest increase. The average now sits at £129 per week, which is a 26% increase in just five years.

The North West and Yorkshire and the Humber have also seen student rental costs increase by more than 20% since 2017, up by 23% and 21% respectively.

The South West (16%), Wales (14%) and South East (11%) have also seen a double-digit increase, with the North East (9%), West Midlands (7%) and East of England (3%) also seeing an increase.

Farhan Malik, CEO of Manor Interiors, comments: “An extra £11 a week might not seem that significant but every penny counts when you’re a student and over the course of a year, they are now paying a considerably higher price in rent compared to just five years ago.

“The good news is that an increased cost of renting and changes to student financing have not dampened the appetite for university education and we’ve seen a record number of students choose to pursue a degree this year.

“Of course, more students looking to rent a limited level of accommodation is likely to keep rental prices buoyant. Great news for landlords or PBSA providers, but not so great if you’re a student.”

The average student rent per week and five-year change

Location	Average student rent 2017 (per week)	Average student rent 2021 (per week)	Change (%)
East Midlands	£102	£129	26%
North West	£109	£134	23%
Yorkshire and the Humber	£103	£125	21%
South West	£127	£147	16%
Wales	£106	£121	14%
South East	£132	£146	11%
North East	£112	£122	9%
West Midlands region	£111	£119	7%
East of England	£128	£132	3%
Scotland	£130	£127	-2%
London	£182	£152	-16%
England	£123	£134	9%
Great Britain	£122	£132	8%

Data sourced from Save the Student

Private rental prices falling in real terms across the UK, latest ONS report shows

Published On: July 20, 2021 at 8:42 am

Author: Em Morley

Categories: Landlord News

Tags: Office for National Statistics,rent prices

Rising rental yields signal a period of opportunity for property investors

Data published by the Office for National Statistics (ONS) reveals that rents paid by private tenants in the UK are falling in real terms.

The figures published by the ONS show that private rental prices grew by 1.2% in the 12 months to June 2021.

However, the National Residential Landlords association (NRLA) says this increase remains well below all measurements of inflation, with the smallest increase, Consumer Price Index (CPI) including housing costs, being 2.4%.

Looking at each country, private rental prices grew by 1.1% in England, 1.5% in Wales, and 1.2% in Scotland.

Regionally, while the East and West Midlands saw the highest annual growth in private rents at 2.4%, London saw the lowest, with rents falling by 0.1%.

The NRLA also highlights that recent data from the Royal Institution of Chartered Surveyors (RICS) has pointed to rents increasing by 3% over the next year as a result of the demand for homes to rent exceeding supply.

Ben Beadle, Chief Executive of the NRLA, has commented: “Today’s figures burst the myth that landlords are hiking rents by as much as possible and demonstrate that market forces are the biggest influence on rent levels. It is clear also that the trend of renters moving out of the capital in response to the pandemic continues.

“That said, demand for privately rent homes continues to outstrip supply and without further efforts to meet that demand, rents will continue to rise. The Government needs a strategy that properly recognises the importance of a thriving private rented sector in which tenants have genuine choices over where they rent.”

You can read the Government’s Index of Private Housing Rental Prices, UK: June 2021 report here: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/june2021

Where to find London’s cheapest 2 bedroom rental properties

Published On: June 2, 2021 at 8:26 am

Author: Em Morley

Categories: Lettings News,Tenant News

Tags: London,Portico,rent prices,Rightmove

Tenant applications for London rentals double in last six months

New research reveals the cheapest and most expensive boroughs in London for renting a 2 bedroom property.

London estate agent Portico has found that rental rates have been dropping during the pandemic, with central London rents down by 13%.

Examining 26,417 rental properties in all 32 London boroughs currently available on Rightmove, it has identified the most affordable locations for tenants.

The research shows that the average rental price in the capital is currently £1,832 per month, while the average rental for a two-bedroom property in the capital is £1,800 per month.

The following table shows a ranking of all 32 London boroughs from cheapest to most expensive. The boroughs have been ranked by their average 2 bedroom rental prices.

London Borough	Number of 2 bedroom properties	Average Rental Price 2 bed (pcm)
Bexley	73	£1,243
Sutton	96	£1,313
Croydon	377	£1,341
Hillingdon	284	£1,375
Barking and Dagenham	123	£1,377
Bromley	175	£1,400
Redbridge	212	£1,404
Harrow	302	£1,428
Waltham Forest	193	£1,458
Lewisham	326	£1,483
Enfield	153	£1,490
Kingston upon Thames	167	£1,551
Barnet	385	£1,575
Haringey	346	£1,602
Ealing	355	£1,642
Greenwich	431	£1,653
Brent	377	£1,667
Newham	381	£1,667
Hounslow	364	£1,689
Merton	279	£1,701
Lambeth	382	£1,885
Hackney	366	£1,912
Islington	380	£1,938
Richmond upon Thames	378	£1,949
Tower Hamlets	382	£1,975
Southwark	427	£2,051
Wandsworth	454	£2,121
Hammersmith and Fulham	395	£2,179
Camden	368	£2,257
Westminster	351	£2,921
Kensington and Chelsea	412	£3,100
City of London	113	£3,284

Robert Nichols, CEO of Portico estate agents, says, “As life begins to return to something a lot more like normal, tenants seem to be making their first post-pandemic moves. Renter registrations are already up a staggering 44% from this time last year. It seems only a matter of time before balance is restored in the market, which will undoubtedly represent some very welcome news for landlords throughout the capital.

“The current snapshot is likely to prove temporary. Along with being an excellent time to rent, it could also be a window of opportunity for first-time investors or those seeking to expand an existing property portfolio. While it’s evident the pandemic has distorted the market, it seems there are lingering effects. With recovery imminent, some of the boroughs that wouldn’t ordinarily offer such bargains may just be lagging behind unfolding events. For tenants and investors alike, that might represent a once in a lifetime chance.”

The full research from Portico can be read here: https://www.portico.com/blog/tenant-advice/the-cheapest-places-to-rent-in-london

Highest rental growth in ten years recorded for three England regions and Wales

Published On: May 25, 2021 at 8:14 am

Author: Em Morley

Categories: Landlord News

Tags: Hometrack,Housing Hand,London,rent prices,rental market

UK rent prices have increased by 3.0% in the last year but dropped by 9.4% in London, according to the latest UK Rental Market Report from Hometrack.

The report states that there is strong rental demand amid constrained supply across the UK outside of London. The North East, South West, East Midlands and Wales have seen the highest rental growth since March 2011.

Hometrack predicts there will be an increase in demand for rental homes in city centres as offices start to reopen.

Terry Mason, Group Operations Director at the UK’s largest rental guarantor service, Housing Hand, comments: “We’ve seen renters in London and other cities head to the suburbs in search of cheaper property while working from home. Many tenants simply waited until their current contract ran out and then headed out of the city centre to save money. Others moved back in with their parents while working from home, making huge savings.

“A few companies have saved money too. Let’s say a typical office desk costs around £750 per month. That’s £15,000 per month for a 20-person team. A company that reduces its requirement to 10 desks can add £90,000 per year straight to its bottom line. While those with long leases don’t have much room for manoeuvre, businesses using flexible office space have gained enormously.

“Of course, if staff are less productive working at home, then those gains are reduced. Some staff are more productive at home; others in the office. Many companies, however, still favour those who are able and willing to work in an office environment.

“As such, it makes sense that demand for rental homes in city centres is likely to pick up once more. Rents now being so much cheaper in many central locations, following the past year of reduced demand, is likely to feed into this too. Tenants can save quite substantially compared to what they were paying pre-pandemic, as we see highlighted by the 9.4% drop in rents in London. I believe all of this points to an uptick in demand, which we will see play out over the remainder of this year and into 2022.”

Read Hometrack’s full report here: www.hometrack.com/uk/insight/rental-market-report/q1-2021-rental-market-report/

Coastal universities with most affordable student rental accommodation

Published On: April 29, 2021 at 10:11 am

Author: Em Morley

Categories: Tenant News

Tags: rent prices,student accommodation

Research by student accommodation platform UniHomes has found the coastal university cities with the most affordable rent prices.

The platform’s analysis of student rental costs within reach of each coastal university in the UK found that students pay an average of £157 per week.

Coastal university rental costs by region

Yorkshire and the Humber the North East are the most affordable regions, at £90 per week, followed by the North West, at £132 per week. However, each of these regions is home to only one coastal university ranked within Britain’s top 100.

Wales is the next most affordable area at £156 per week, with five coastal universities ranking within Britain’s top 100.

Scotland is home to the most choice with nine coastal universities and an average rental cost of £157 per week, while the South East (£167 per week) and the South West (£174 per week) are home to the highest rental costs of all regions.

Most affordable coastal universities for renting

Teeside University in the North East and Yorkshire’s University of Hull rank top for most affordable at just £90 per week.

The University of Plymouth in the South West is the next most affordable for a coastal student rental at £95 per week, while Scotland’s Robert Gordon University (£100 per week) and the University of Aberdeen (£104 per week) complete the top five.

Phil Greaves, Co-Founder of UniHomes, comments: “We have some outstanding coastal cities and towns in Britain and a number of these are also home to some excellent universities. This means many students can combine their higher education endeavours with a year-long trip to the seaside.

“Of course, with the unpredictable nature of the British weather there’s no guarantee of sun, but a scenic university can provide many students with a completely different pace of life to that of their hometown.

“Generally, the cost of renting around these universities is no different to their non-coastal counterparts although this is, of course, dependent on which university you opt for.

“Some of the more traditional seaside tourism towns will set you back a fair bit more but there are options across all areas of coastal Britain that can provide you with a fairly affordable university rental.”

The below data is based on the UK’s top 100 Universities but excluding Northern Ireland due to a lack of student rental data.

Rental data is based on the weekly cost of renting a student property within the same postcode as each university’s main campus. Source: Save the Student.

The difference in the average weekly student rental cost by university geography (coastal vs other), excluding bills

Category	Number of Universities	Average Rental Cost per Week
Coastal	27	£157
Town/General	71	£159

The average weekly student rental cost of all coastal universities in each region

Region	Number of Universities	Average Rental Cost per Week
SOUTH WEST	7	£174
SOUTH EAST	3	£167
SCOTLAND	9	£157
WALES	5	£156
NORTH WEST	1	£132
NORTH EAST	1	£90
YORKSHIRE AND THE HUMBER	1	£90

The average weekly student rental cost surrounding each university

University	Region/Nation	Average Rental Cost per Week
Teesside University, Middlesbrough	NORTH EAST	£90
University of Hull	YORKSHIRE AND THE HUMBER	£90
University of Plymouth	SOUTH WEST	£95
Robert Gordon University (RGU)	SCOTLAND	£100
University of Aberdeen	SCOTLAND	£104
Lancaster University	NORTH WEST	£132
Cardiff Metropolitan University	WALES	£135
Queen Margaret University, Edinburgh	SCOTLAND	£142
University of Portsmouth	SOUTH EAST	£144
University of Exeter	SOUTH WEST	£149
Swansea University	WALES	£153
Cardiff University	WALES	£154
University of Dundee	SCOTLAND	£155
Abertay University	SCOTLAND	£155
Arts University Bournemouth	SOUTH WEST	£159
Bournemouth University	SOUTH WEST	£159
Heriot-Watt University	SCOTLAND	£159
Edinburgh Napier University	SCOTLAND	£165
Aberystwyth University	WALES	£167
University of Southampton	SOUTH EAST	£168
Bangor University	WALES	£172
University of Sussex	SOUTH EAST	£189
University of Bristol	SOUTH WEST	£192
University of Edinburgh	SCOTLAND	£203
Bristol, University of the West of England (UWE)	SOUTH WEST	£230
University of St Andrews	SCOTLAND	£234
Falmouth University	SOUTH WEST	£234

London tenants seeing ‘more manageable’ rent prices during pandemic

Published On: April 28, 2021 at 9:20 am

Author: Em Morley

Categories: Lettings News,Tenant News

Tags: Benham and Reeves,London,rent prices

London has become a more affordable place to rent during the pandemic, according to research by London lettings and estate agent Benham and Reeves.

Benham and Reeves analysed the rent to income ratio prior to the pandemic and found that across London, 64.4% of the average net monthly earnings was required to cover the average rent.

The agent also analysed how this has changed based on the latest rental data combined with the latest earnings data from the ONS, whose estimates included furloughed employees and were based on actual payments made to these employees from company payrolls and the hours on which this pay was calculated.

The research shows that across London, this ongoing financial support via the furlough scheme and a reduction in the cost of renting means that the average London tenant is now paying just 60.2% of their income to cover the cost of renting.

This trend has been seen across 23 of the capital’s boroughs and in some cases has been far greater. However, areas such as Islington and Haringey have seen rent increases.

	Pre-COVID			Currently
Location	Average Rent (Sep 2019)	Average Net Salary (Oct 2019)	Rent to Income Ratio	Average Rent (Sep 2020)	Average Net Salary (Nov 2020)	Rent to Income Ratio	Change in Rent to Income Ratio
London	£1,697	£2,634	64.4%	£1,639	£2,721	60.2%	-4.2%
Camden	£2,536	£3,403	74.5%	£2,012	£3,223	62.4%	-12.1%
Lewisham	£1,324	£2,316	57.2%	£1,322	£2,643	50.0%	-7.1%
Kingston upon Thames	£1,390	£2,778	50.0%	£1,288	£2,981	43.2%	-6.8%
Hammersmith and Fulham	£2,117	£3,215	65.9%	£2,016	£3,288	61.3%	-4.5%
Barking and Dagenham	£1,194	£1,805	66.2%	£1,206	£1,951	61.8%	-4.3%
Harrow	£1,407	£2,365	59.5%	£1,445	£2,611	55.3%	-4.1%
Hounslow	£1,432	£2,260	63.4%	£1,416	£2,370	59.8%	-3.6%
Ealing	£1,463	£2,422	60.4%	£1,568	£2,758	56.9%	-3.6%
Kensington and Chelsea	£3,053	£5,190	58.8%	£2,977	£5,349	55.7%	-3.2%
Bromley	£1,321	£2,779	47.5%	£1,318	£2,966	44.4%	-3.1%
Hillingdon	£1,270	£2,097	60.6%	£1,244	£2,162	57.5%	-3.0%
Hackney	£1,834	£2,363	77.6%	£1,860	£2,481	75.0%	-2.6%
Waltham Forest	£1,309	£2,268	57.7%	£1,359	£2,458	55.3%	-2.4%
Bexley	£1,106	£2,360	46.9%	£1,113	£2,498	44.6%	-2.3%
Redbridge	£1,318	£2,385	55.3%	£1,311	£2,465	53.2%	-2.1%
Brent	£1,535	£2,206	69.6%	£1,494	£2,195	68.1%	-1.5%
Croydon	£1,136	£2,262	50.2%	£1,155	£2,363	48.9%	-1.3%
Merton	£1,530	£2,787	54.9%	£1,639	£3,060	53.6%	-1.3%
Barnet	£1,523	£2,490	61.2%	£1,485	£2,476	60.0%	-1.2%
Enfield	£1,310	£2,132	61.5%	£1,301	£2,150	60.5%	-1.0%
Havering	£1,169	£2,309	50.6%	£1,175	£2,364	49.7%	-0.9%
Westminster	£3,018	£4,043	74.6%	£2,822	£3,803	74.2%	-0.4%
Newham	£1,424	£1,999	71.2%	£1,476	£2,083	70.9%	-0.4%
Southwark	£1,654	£2,711	61.0%	£1,720	£2,816	61.1%	0.1%
Lambeth	£1,754	£2,561	68.5%	£1,961	£2,838	69.1%	0.6%
Richmond upon Thames	£1,857	£3,749	49.5%	£1,940	£3,869	50.1%	0.6%
Tower Hamlets	£1,803	£3,159	57.1%	£1,810	£3,108	58.2%	1.2%
Greenwich	£1,404	£2,649	53.0%	£1,494	£2,755	54.2%	1.2%
Sutton	£1,167	£2,335	50.0%	£1,133	£2,206	51.4%	1.4%
Wandsworth	£1,883	£3,395	55.5%	£1,948	£3,393	57.4%	1.9%
Haringey	£1,558	£2,339	66.6%	£1,644	£2,292	71.7%	5.1%
Islington	£1,914	£3,193	59.9%	£1,908	£2,906	65.7%	5.7%
Data Sources	ONS Private Rental Market Summary	ONS Employee Earnings in the UK	Rent as a percentage of net income	ONS Private Rental Market Summary	ONS Employee Earnings in the UK	Rent as a percentage of net income	Change between rent to income ratios

Marc von Grundherr, Director of Benham and Reeves, comments: “The pandemic has caused a large degree of financial instability for tenants and landlords alike and so the last two years have been far from smooth sailing for those within the London rental sector.

“However, one silver lining to the ongoing uncertainty caused by Covid does seem to be an increase in rental affordability across much of the capital.

“This has come about due to two driving factors. The first being a drop in demand which has caused many landlords to slash rents in order to secure a tenant and recoup some form of rental income.

“The second has been the ongoing financial support of the furlough scheme which has made the difference between retaining employment and losing it for a great deal of people. As a result, they’ve been able to maintain some form of income, albeit at a lower level, and this has enabled them to cover the cost of renting.

“As it stands, the cost of renting is more manageable now than it was two years ago and so those returning to the capital should be able to secure a decent rate of rent for the duration of their initial tenancy.

“Of course, as we do return to normality, this growing demand is likely to bring rental prices back to their pre-pandemic highs and so any tenants with intentions of snagging a deal should act sooner rather than later.”