Since 2017, The DPS has used the data we collect to track the rental values of properties across all regions of the UK to produce our quarterly Rent Index. This data has shown how resilient the UK rental market is and, in particular, how resilient it has been throughout the course of the pandemic.
The latest DPS Rent Index shows that in the last quarter, average rents in the UK have delivered growth of just 0.5%, to £804 per month. However, since this time last year, we’ve seen a more significant average increase of just under 3%. Have you considered how the rents you charge compare to average rents in your region? Find out more below as we look at regional insights from the latest DPS Rent Index.
London more affordable, but still most expensive region
Overall, average rents in London have fallen by just under 1%, from £1,325 in Q1 2021 to £1,314 in Q2. All property types in London recorded falls, except semi-detached houses which rose £25 to £1,705 - possibly buoyed by the demand for more spacious properties as more people turn to home working. It’s probably no surprise that London is the most expensive region, and whilst average earnings may be higher in the Capital, Londoners are spending on average a little under 40% of their salaries on rental costs.
North East and Yorkshire among cheapest and most affordable
The North East comes out as the cheapest region to rent in the UK with an average rent of £530 per month. The North East is also the most affordable when looking at rent as a percentage of average wage, with only 23% of earnings spent on rent. The North East’s neighbour, the Yorkshire region, has the third-cheapest average monthly rent at £562, though is the second most affordable in terms of percentage of average wage.
Taking the data down to county level the least expensive counties are Kingston upon Hull (£466), followed by Hartlepool (£473), North East Lincolnshire (£475), and Durham (£495).
Bath and North Somerset least affordable county
When we look at things in terms of percentage of wages earned, London is the least affordable region, but at county level Bath and North East Somerset is the most expensive county across the whole of the UK, despite average rents falling £22 this quarter, to £1,065. Surrey in the South East (£1,147) and Hertfordshire in the East (£1,047) take second and third spots respectively in terms of affordability.
How do your rents compare to the average in your region?
To learn how rents by property type have behaved over the last quarter and see how rents stack up in your region, read the latest DPS Rent Index.
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*Matt Trevett is Managing Director of the DPS.