Average rents -

Marketing January 20, 2022 No Comments

Average rents up for fifth consecutive quarter

Average UK rents increased for the fifth consecutive quarter during Q4 2021, according to data collected by The Deposit Protection Service (DPS).

Average rents reached £834 during the final three months of 2021, an increase of £16 (1.96%) on the previous quarter and a £42 or 5.30% increase on Q3 2020.

South West rents, which traditionally lag behind the national average, drew level for the first time, rising by £19 (2.33%) during Q4 2021, and by £54 (6.92%) from £780, the largest regional percentage increase during the past 12 months.

Average rents have increased across all property types since Q3 2021, with those on detached properties increasing the most; on average by £26 (2.33%) to £1,143, and also rising £88 or 8.34% from Q3 2020.

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The organisation also said that Q4 2021 rents also rose across most of England, with London, the South West, and Yorkshire seeing the largest value rises, contributing to an annual UK average rent increase of just over 4% for 2021.

York saw one of the highest increases, up £71 (9.49%) from £748 to £819 during Q4 2021, a rise of £120 or 17.17% from £699 since Q4 2020.

Conversely, Southampton saw one of the largest falls in rental value during Q4 2021, decreasing £122, (15.12%) from £807 to £685.

Average rents in the North East, traditionally one of the cheapest regions in the UK to rent, increased by £5 (0.91%) from £549 to £554 during Q4 2021, with rents increasing £34 (6.54%) during the past 12 months.

During Q4 2021 London rents increased for the second consecutive quarter, ending 2021 at £1,381, an increase of £42 (3.14%), the highest value regional increase, and a £64 (4.86%) increase on the same quarter during 2020.

The London borough of Islington saw the sharpest value rise in rent during Q4 2021, an increase of £273 (19.6%), from £1,393 to £1,666, added the organisation.

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Matt Trevett, managing director at The DPS, said: “During Q4 2021 rents increased in the vast majority of UK regions and across all property types, with demand for detached properties driving the greatest increase in rental value for these properties.

“Our figures also show that renters were less likely to move during the past 12 months, suggesting lower availability of stock and therefore perhaps more limited options for moving.

“We’re also seeing definitive signs of recovery in London, particularly the return of the popularity of flats in some areas, suggesting that some tenants are coming back to the capital.”

Paul Fryers added: ”There is currently significant pressure on rental stock across the country.

“Reasons are complex, but they include landlords selling up to capitalise on high sale prices, plus a shortage of new build homes as a result of supply chain and raw materials issues.

“We’re hearing stories of landlords receiving unprecedented levels of interest, with some renters willing to pay rents upfront and even stories of some tenants willing to pay over the odds to secure properties.”

By Jake Carter

Source: Mortgage Introducer

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Marketing October 16, 2019 No Comments

Rents grow as housing market slows

The average rent in the UK is now £967, up by 2.5% on the same time last year.

When London is excluded, the average rent in the UK is now £797, this is up by 2.2% on last year.

Average rents in London are now £1,694, up by 3.3% on last year.

Nationwide’s House Price Index reported that house prices rose by just 0.2% in September, down from 0.6% in August and marking the 10^th month in a row that the annual house price growth was recorded as under 1%.

All 12 of the regions monitored by HomeLet showed an increase in rental values between September 2018 and September 2019.

Five of the regions monitored by HomeLet showed an annual increase of over 3%, the North West, the East Midlands, the South West, Greater London and the North East.

The region with the largest year-on-year increase is the North West, showing a 4.4% increase between September 2018 and September 2019

As the UK’s largest tenant referencing firm, HomeLet references over 500,000 tenants every year. The HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.

The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.

Region	Sep-19	Sep-18	Annual Variation	Aug-19	Monthly Variation
North West	£739	£708	4.40%	£741	-0.30%
East Midlands	£653	£629	3.80%	£655	-0.30%
South West	£846	£818	3.40%	£852	-0.70%
Greater London	£1,694	£1,640	3.30%	£1,689	0.30%
North East	£535	£519	3.10%	£531	0.80%
West Midlands	£718	£701	2.40%	£720	-0.30%
Yorkshire & Humberside	£657	£644	2.00%	£655	0.30%
Wales	£634	£621	2.10%	£636	-0.30%
Scotland	£676	£663	2.00%	£671	0.70%
East of England	£927	£915	1.30%	£930	-0.30%
Northern Ireland	£673	£664	1.40%	£664	1.40%
South East	£1,045	£1,043	0.20%	£1,064	-1.80%
UK	£967	£943	2.50%	£970	-0.30%
UK excluding Greater London	£797	£780	2.20%	£802	-0.60%

Source: Property118

Marketing May 1, 2019 No Comments

More properties coming onto the market

The number of properties coming onto the market this month rose by 12.3% and by 1.9% on the year, estate agent haart has found.

In March, there were 12 buyers chasing every property across England and Wales. House prices across England and Wales fell by 0.6% on the month and by 5% on the year. The average house price now sits at £218,556. New buyer registrations rose by 23.2% on the month and by 7.8% annually.

Paul Smith, chief executive of haart, said: “Three years on from George Osborne introducing the 3% hike in stamp duty surcharges on second homes, landlords are beginning to come to terms with the additional costs and are cautiously entering the market again.

“Our branches saw a monthly uptick of 7.9% in the number of landlords registering to buy, a figure which has been continuing to grow since the start of 2019.

“Interestingly, sale prices to landlords are down by nearly 12% which may be spurring on this activity, these price decreases could be causing the available stock to fall within lower stamp duty thresholds, making the stamp duty levy a little easier to stomach.

“Despite this, landlords are not back in their hundreds, the number of registrations is still down 22% on the year. Whilst some brave souls are re-entering the market, the hammering buy to let investors received in terms of various tax changes is still fresh in many of their minds.

“Clearly investors are recognising the value that can still be found in buy-to-let property, especially in comparison to the overvalued and faltering stock market.

“Although the property market hinges on confidence, the FTSE 100, gold and cash are far more volatile to socioeconomic impact, so investors are increasingly returning to property where they deem their money safest, and where the yields are highest.

“The market as a whole continued to gain momentum in March as the pent-up demand from a delayed Brexit continued to drive transactions. Transactions are up 11% on the year whilst new buyer registrations boomed by 23%.”

The market has become less efficient this month, as the number of transactions has fallen by 2.9%, whilst the number of viewings has increased by 19.5%.

This indicates there is pent-up demand in the market. The average purchase price for first-time buyers has fallen by 2.5% on the month and by 2.2% on the year.

This comes as the number of first-time buyers registering has risen by 19.2% on the month, but fallen by 15.6% on the year. The average amount first-time buyers are paying for a deposit has risen by 0.8% but fallen by 5.7% on the year.

Clearly, first-time buyers are capitalising on low prices and are putting down larger deposits than needed to own more of their own homes this month.

The average property price in London has fallen by 0.8% on the month and by 2.5% on the year. The number of new buyers entering the market has risen by 22% on the month, and by 17% on the year.

The number of new instructions has risen by 7.5% on the month, but fallen by 18% on the year. Sale transactions decreased by 10% on the month and by 20% on the year.

The number of tenants entering the market across England and Wales has risen by 14% on the month and by 25% on the year.

The average rent is down 0.3% on the month, and by 4.2% on the year. The average rent now sits at £1,293 per month across England and Wales. Tenant demand in London has increased by 11.7% on the month, and by 52% on the year.

London rents are up 1.1% on the month and have risen by 4.2% on the year. The average rent now sits at £1,941 per month.

By Michael Lloyd

Source: Mortgage Inteoducer

Marketing February 13, 2019 No Comments

Average rents up 2.5% in January

Average rents across the UK rose by 2.5% in January 2019 when compared to the same month a year previously, HomeLet’s Rental Index has found.

The average monthly rent is now £932. Rents in London increased by 3.7% in January 2019 from the same month of 2018; the average rent in the capital now stands at £1,588 a month.

When London is excluded, the average UK rental value was £775 in January 2019, up 2.0% on last year.

Martin Totty, chief executive at HomeLet, said: “Positively for both tenants and landlords, this year we’ve seen stability in UK rental price growth, with increases remaining broadly in line with the rate of consumer inflation.

“For landlords there remains a sustained demand for property, with the private rental sector continuing to provide the market with both flexible and long term housing options.

“The slowdown in the rate of house price growth, as reported by the Nationwide House Price Index is being driven by the depressed London market, which saw house prices decline by 0.8% during the last four months of 2018.

“In contrast, we have seen average rental values in the capital rise by over 4% in the latter stages of the year. Ultimately, we would expect this theme to continue in London, if the demand for property outweighs supply.”

Rents rose in 11 out of the 12 regions covered in the research. In January average rental values in London (£1,588) were 70.4% higher than the UK (£932).

When London is excluded the average rent in the UK was £775 in January and average rents in London (£1,588) were 104.9% higher than the rest of the UK.

Totty added: “Private residential landlords will continue to play a key role in the wider UK housing market. Whilst the outlook for property investors remains positive, one of the key concerns for the market in 2019 would be a potential lack of supply in certain regions.

“The government’s squeeze on private landlords via taxation changes and more regulation could discourage their continued participation in this important sector. Unlike the trends we saw in 2018, any reduction in supply could lead to rental increases that are above the rate of consumer inflation.

“The data used in the HomeLet Rental Index provides us with a forward-looking view of the rental market, so it will be interesting to see how this theme develops in early 2019.”