Posts with tag: rent prices

Increasing rents for larger homes continued into last quarter of 2020, says The DPS

Published On: January 19, 2021 at 9:24 am

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Categories: Lettings News

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

UK rent levels continued to rise faster for larger properties during the last quarter of 2020, according to the latest edition of The Deposit Protection Service’s (The DPS) quarterly Rent Index.

The Rent Index is based on its database of 1.8 million current tenancies and 13 years of data. It shows that the average monthly cost of renting a detached property in the UK between October and December 2020 was £1,055. This is £29 (2.83%) more than in Q3 2020 and £57 (5.71%) more than Q4 2019.

The average rent for semi-detached homes increased to £847 in Q4 2020. This is £19 (2.29%) more than in the previous quarter (Q3) and £33 (4.05%) more than in the same period the previous year (Q4 2019).

It has been recorded that the cost of renting a flat has increased at a much slower rate than that of renting larger properties. This is despite the cost of renting a flat increasing at a faster rate in Q4 of 2020 than at the beginning of that year.

Average rent by property type
Property typeQ4 2020Q3 20202020 Q4 vs 2020 Q3 % change Q4 20192020 Q4 vs 2019 Q4% change 
Detached£1,055£1,0262.83%£9985.71%
Semi-detached£847£8282.29%£8144.05%
Flats£803£7951.10%£7941.13%
All£792£7801.54%£7732.46%

Matt Trevett, Managing Director at The DPS, comments: “Lockdown has meant many more people are spending longer at home, including far more extensive remote working, and as a consequence more tenants are seeking larger properties with more space.

“While there seems to be a particular focus on detached and semi-detached properties, the rental market as a whole remained remarkably resilient throughout much of 2020, despite broader economic uncertainties and restrictions that affected home viewings and public movement during the first national lockdown.”

Paul Fryers, Managing Director at Zephyr Homeloans which, like The DPS, is part of the Computershare Group, said: “Zephyr Homeloans saw a significant increase in buy-to-let mortgage applications in the last half of 2020, further suggesting a continued overall resilience in the UK rental market.

“Increased demand for detached and semi-detached properties will be of particular interest to the sector, with both landlords and tenants looking to adjust to the new circumstances that the pandemic has brought.”

The DPS said that average overall UK rent increased to £792 during Q4 2020, which is £12 (1.54%) more than in Q3 2020 and £19 (2.46%) more than Q4 2019.

Regional figures

London rents continued to drop during the period, standing at £1,317: £5 (0.38%) lower than in Q3 2020 and £28 (2.08%) less than Q4 2019.

This drop was biggest in Central London, where average rent was £1,377 in Q4 2020: £54 (3.77%) less than during the same period in 2019 (£1,431) and £14 or 1.01% less than  Q3 2020.

The capital remains proportionately the most expensive area in which to rent property, with costs standing at 39% of average UK income.

Two other regions experienced a decline in average rent between Q3 and Q4 2020 – the North East, where it fell ­by £9 (1.70%) to £520, and Yorkshire, where it fell by £12 (-2.15%) to £546.

The West Midlands experienced the largest percentage rise (£24 or 3.85%) during Q4 2020, reaching £647.

The North-East remained the cheapest region during Q4 2020, with rents accounting for 23% of average UK income.

Region Average Rent  Q4 2020 Change since Q3 2020 (£)% Change since Q4 2019
London £1, 317-£5-2.08%
South East £923£235.25%
South West £780£184.56%
East £831£160.97%
East Midlands £612£135.15%
West Midlands £647£245.89%
Yorkshire £546-£124.20%
North West£616£103.36%
North East £520-£90.39%
Scotland£652£196.54%
Wales£606£142.89%
NI£551£150.55%

For the full report, visit The DPS’ blog:  https://depositprotection.com/news/latest-news/2021/average-rents-grow-throughout-2020-the-dps-rent-index-q4-2020/

Howsy researches rent price shift since property market reopened in May

Published On: November 25, 2020 at 9:48 am

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Categories: Landlord News

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Safest areas to live in the UK

Tenants have seen an increase in rent prices of 0.6% across the UK, according to research from lettings management platform Howsy.

Looking at the current cost of renting across 20 major UK cities, Howsy has researched changes since the property market reopened for business in May.

Newport has seen rents jump by 13.4%, while Nottingham (11.4%), Swansea (11.2%), Newcastle (4.4%), Glasgow (3.15), Leeds (1.6%), Sheffield (1%), Bristol (1%), Plymouth (0.9%) and Birmingham (0.6%) have also seen an uplift since May.

The platform also notes that with tenant demand falling as working from home becomes the new norm, some cities have seen a drop in the average cost of renting.

Edinburgh has seen the largest decline, down 6% from £1,085 per month to £1,020 now. Cambridge has also seen a notable decline with rents falling 5.4% since May, while London has seen the third-largest decline at -4.8%. 

Manchester, Oxford, Cardiff, Bournemouth and Liverpool also make the list in terms of rental cost declines across major UK cities.

Calum Brannan, Founder and CEO of Howsy, commented: “It’s clear that the current trend of working from home has had a notable impact on the rents secured by landlords in a number of major UK cities. However, it’s fair to say that this decline is prevalent across the board and some cities still present a strong buy-to-let market with high demand continuing to push rental prices up.

“The cities to be worst hit have largely been the least affordable, such as Edinburgh, Cambridge, London, Manchester and Oxford. With many now working from home, renting in these expensive cities doesn’t make much sense and so they’ve chosen to look further afield.

“However, in more affordable cities such as Newport, it makes little difference and so tenant demand remains strong whether they are working from home or not.”

LocationAv Rent pm – May 2020Av Rent pm – Oct 2020Change – May vs Oct 2020
Newport£578£65513.4%
Nottingham£724£80611.4%
Swansea£639£71011.2%
Newcastle£691£7224.4%
Glasgow£746£7703.1%
Leeds£767£7791.6%
Sheffield£675£6821.0%
Bristol£1,019£1,0291.0%
Plymouth£668£6740.9%
Birmingham£742£7470.6%
Leicester£697£6970%
Southampton£839£8390%
Liverpool£645£634-1.7%
Bournemouth£1,000£981-1.9%
Cardiff£810£791-2.3%
Oxford£1,320£1,285-2.6%
Manchester£836£807-3.5%
London£1,582£1,505-4.8%
Cambridge£1,147£1,085-5.4%
Edinburgh£1,085£1,020-6.0%
UK Overall£887£8920.6%
Data sourced from PropertyData

Spotahome analyses rental affordability and job availability in London

Published On: October 9, 2020 at 8:20 am

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Categories: Lettings News,Tenant News

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Where to find London’s cheapest 2 bedroom rental properties

Greenwich and Waltham Forest are currently the best London options for renters looking for a mix of rental affordability and job prospects, according to international rental marketplace Spotahome.

It analysed data on current job opportunities within five miles of each London borough. On average, it found that there are currently 11,280 jobs per borough.

There is, however, a far higher level of job opportunities in 11 boroughs, where you can currently find between 25,740 and 29,631.

Spotahome found Westminster to have the most job opportunities on offer, with almost 30,000 within five miles of the borough.

Lambeth also ranks high with 29,546 current roles available, along with the City of London (29,045), Camden (28,875) and Islington (28,788). 

However, due to their largely central locations, 10 of the 11 boroughs with the most job opportunities within five miles are also home to an average rent above that of the London average. 

Both Waltham Forest (26,490) and Greenwich (25,740) have a considerable level of available job roles within five miles of each borough. With an average rent of £1,476, Greenwich is only marginally higher than the London average, while Waltham Forest comes in 7% more affordable at £1.352.  

UK and Ireland Country Manager of Spotahome, Nadia Butt, commented: “Despite a Government U-turn on returning to our physical workplaces, many tenants heading to the capital continue to be motivated by the availability of work and the ability to rent within a commutable distance to their workplace. 

“As with most aspects of living in London, a higher level of job opportunities within a short distance does command a higher level of rent, however, for those that do their research this doesn’t have to be the case. 

“Both Greenwich and Waltham Forest offer everything you could want when renting in London. Both boroughs are home to relatively affordable rental prices, an abundance of green space, social amenities and great transport links.

“In what are currently tough times for those searching for a job, they also offer the greatest wealth of employment opportunities within a five miles radius.” 

Table shows the current level of job opportunities advertised within five miles of each borough and the current average rent
London BoroughCurrent job opportunities within 5 milesAverage rent per month
Havering552£1,169
Enfield975£1,292
Barnet985£1,499
Bromley1,221£1,307
Bexley1,307£1,092
Hillingdon1,449£1,200
Barking and Dagenham1,520£1,208
Redbridge1,711£1,311
Harrow2,027£1,387
Croydon2,108£1,140
Sutton2,223£1,151
Merton2,313£1,640
Hounslow2,467£1,352
Kingston upon Thames2,706£1,306
Newham3,540£1,453
Lewisham3,606£1,316
Brent4,313£1,502
Richmond upon Thames4,560£1,835
Ealing4,752£1,569
Wandsworth5,724£1,958
Hammersmith and Fulham6,594£2,117
Kensington and Chelsea6,989£3,023
Greenwich25,740£1,476
Waltham Forest26,490£1,352
Southwark26,925£1,718
Hackney27,588£1,842
Haringey27,652£1,669
Tower Hamlets28,328£1,835
Islington28,788£2,003
Camden28,875£2,302
City of London29,045£2,274
Lambeth29,546£1,908
Westminster29,631£3,046
London Average11,280£1,450
Data SourcesIndeedONS

Tenant demand continues to reach record levels, says ARLA Propertymark

Published On: October 1, 2020 at 8:21 am

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Tenant demand

The latest Private Rented Sector (PRS) Report from ARLA Propertymark shows that the number of new prospective tenants continued to rise in August.

The number recorded during that month was the highest since records began in January 2015. The average letting agent branch registered 101 new tenants, which breaks July’s previous record of 97.

Demand from tenants by region in August

The report also records 208 rental properties available per letting branch in August. This remained the same as the record high figure recorded in July, which beat the previous record of 192 properties managed per letting agent branch in July 2017. 

Tenancy lengths have also increased to an all-time high, with tenants staying in the same home for an average of 21 months. Regionally, this figure was highest in the East Midlands with tenancies lasting 25 months. Tenancy lengths are currently lowest in the North East at 10 months.

The number of tenants experiencing rent increases has gone up in August. 48% of agents have witnessed landlords increasing rent, compared to 29% in June and 39% in July. Year-on-year, this is still 16% lower than in August 2019, when the figure stood at 64%.

Angela Davey, President, ARLA Propertymark, has commented: “Our latest figures reveal the rental market still isn’t showing any signs of slowing down. We continue to see record breaking levels of rental stock and demand from tenants, painting a positive picture for the future of the private rented sector.

“With COVID-19 lockdown restrictions starting to increase again as we head towards the colder months, it’s more important than ever for landlords to communicate well with their tenants, and that tenants continue to pay their rent to ensure the market remains strong over the next period.”

View the full report here: www.arla.co.uk/media/1049002/prs-report-august-2020.pdf.

London high street tenants are paying above average rent prices, says Spotahome

Published On: September 4, 2020 at 8:28 am

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Categories: Tenant News

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London high street

Tenants are paying above the average rent price for London to live closer to a high street, research from Spotahome reveals.

Spotahome looked at each London borough based on the high street population as a percentage of total population. 

The research shows that in all nine boroughs where more than 50% of the population is located on or near the high street, people pay above the London average rent of £1,644. 

As an example, 82% of renters in the City of London are living on or near a high street, paying an average monthly rent of £2,274.

Spotahome has pointed out that a shift in priorities could occur due to COVID-19, leading to higher demand and higher rents in areas with more green spaces instead.

However, all London boroughs with less than 34% of its population living on the high street have an average rent price less than London’s overall average of £1,644.

UK and Ireland Country Manager of Spotahome, Nadia Butt, commented: “While it’s understandable that people pay more to be near amenities like tube stations, bars and restaurants, this trend may be shifting.

“After spending months inside, many tenants are prioritising green spaces over the busy high street, especially as they look to avoid being exposed to the virus in the event of a potential second wave.

“Therefore, we may see a rebalancing of the cost of renting, as demand shifts from the high street to parks and greenery, with these currently more affordable boroughs climbing in cost as a result.”

BoroughHigh street population as a share of total local authority population (%)Average rent pm
City of London81.8£2,274
Kensington and Chelsea71.4£3,023
Westminster67.3£3,046
Hammersmith and Fulham64.9£2,117
Camden63.1£2,302
Islington56.9£2,003
Haringey53.2£1,669
Hackney51.5£1,842
Wandsworth50.0£1,958
Waltham Forest49.7£1,352
Newham49.5£1,453
Southwark47.2£1,718
Tower Hamlets39.5£1,835
Brent37.8£1,502
Richmond upon Thames34.2£1,835
Ealing33.5£1,569
Merton32.9£1,640
Redbridge32.4£1,311
Lewisham32.2£1,316
Barking and Dagenham31.9£1,208
Barnet30.4£1,499
Lambeth30.4£1,908
Enfield29.9£1,292
Harrow29.1£1,387
Kingston upon Thames28.3£1,306
Croydon28.1£1,140
Hounslow25.4£1,352
Greenwich24.8£1,476
Sutton24.3£1,151
Bromley23.3£1,307
Havering22.9£1,169
Bexley20.2£1,092
Hillingdon19.0£1,200
London£1,644

Scrapping rent cap bill demonstrates advantages of industry self-regulation

Published On: August 14, 2020 at 8:01 am

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Categories: Law News

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rent cap bill

The plan to introduce rent caps in Scotland was recently scrapped, which PayProp believes demonstrates the difficulty of introducing new lettings regulation amid ongoing uncertainty. 

The automated lettings payment platform has explained the situation in further detail:

What is the Fair Rents (Scotland) Bill?

The Fair Rents (Scotland) Bill was put forward by Scottish Labour MSP Pauline McNeill, with the intention to cap rent increases for Private Residential Tenancies. This cap was to be set at no more than the annual Consumer Prices Index plus 1%.

It was introduced to the Scottish Parliament in June this year but later withdrawn in July before it could be debated by politicians. It would have given private tenants the right to apply for a ‘fair rent’, based on the condition and amenities of the property. This would have been determined by a rent officer or First-tier Tribunal no more than once in any 12-month period.

Landlords would also have been required to disclose rent prices for each of their properties when registering or renewing their registration on the Scottish Landlord Register.

Why was the bill scrapped?

A spokesperson for the Scottish Parliament’s Local Government and Communities Committee said that the decision was made due to finite resources being available, limited time for scrutiny, and the need to investigate the impact of COVID-19.

PayProp also points out that another report states the bill might have been scrapped because it was unlikely to become law before the 2021 Scottish elections.

Neil Cobbold, Chief Sales Officer at PayProp, says: “It is not surprising to see the bill scrapped. Rent controls are complex to introduce and deeply controversial among landlords and property professionals.

“Therefore, now may not be the best time to consider such far-reaching regulation as the market continues to recover from the unprecedented shock of the last few months.”

A better way forward for future regulation?

Many rental market measures introduced in Scotland, such as regulation of agents and the banning of tenant fees, have recently been adopted south of the border.

Cobbold says in the same way, delays to new Scottish legislation could also be mirrored in England as the market continues to recover from the pandemic – but that industry self-regulation may fill the gap. 

He comments: “Before any additional top-down regulation is introduced across any part of the UK, there would need to be significant research and analysis carried out, as well as a full consultation with all PRS stakeholders.

“The difficulty of bringing forward new property industry legislation makes the role of industry self-regulation that much more important.

“In contrast, initiatives like the ongoing Code of Practice Steering Group consultation, based on the recommendations of the RoPA report, give property professionals a chance to agree new industry rules that are sensitive to challenging market conditions.”

The importance of having your say

Cobbold also says that while COVID-19 could affect the plans for many pieces of legislation, property professionals should take the opportunity to make their voices heard.

He concludes: “The consultation period will remain open until 4 September, and I would encourage everyone involved in the property industry to give their feedback..

“With so many from the sector already getting involved, we can reasonably expect the final document to reflect our needs and concerns while ensuring that we continue to do our best for landlords, tenants and homebuyers.”