Property News. From Moving In.

Sharp rise in rents in second quarter, reports DPS

The average UK rent rose from £757 to £771 during the second quarter of 2019 – that’s 1.7 per cent, according to the latest edition of The Deposit Protection Service Rent Index.

It says the increase between April and June is the first significant uplift in rents since the average monthly UK rental price began to decline in the last quarter of 2017.

Daren King, head of tenancy deposit protection at The DPS, says: “The increase in rents during the second quarter of 2019 is striking, after a prolonged period of stagnation in the market.

“Many commentators predicted that the tenancy fees ban would drive up rents as letting agents and landlords looked to alternative sources to cover costs but, with the ban coming in late in this quarter, it’s too early to say whether it is behind the hike.

“Given the economic factors that were behind the drop in rent prices remain relatively unchanged, it will be interesting to see if the upward trend increases between July and September.”

The DPS report also showed that average monthly rents increased by £7 (0.87 per cent) from £764 year on year.

London saw its first increase in average rent since the last quarter of 2017, from £1,288 in Q1 2019, to £1,319 in Q2 2019 (2.42 per cent).

Outside of London, average monthly rent now stands at £673, an increase of £10 (1.5 per cent) on last quarter, and a marginal increase of £2 (0.25 per cent) compared with the same quarter last year.

While all property types experienced a rise in average rent across the UK, the largest increase was seen for terraced properties, rising from £699 to £731 (4.59 per cent).

On average, the report found that UK renters are spending 32 per cent of their wages on rent.

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Original Source: Letting Agent Today.

Original Author: Graham Norwood.

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https://www.lettingagenttoday.co.uk/breaking-news/2019/7/sharp-rise-in-rents-in-second-quarter-reports-dps