The latest issue of The DPS Rent Index is out now
In contrast to the downward trend seen throughout 2018 and the early part of 2019, average rents in the second quarter of 2019 have increased sharply. Industry experts believe the Tenant Fees Ban is likely to be a major contributor but with Scotland seeing the largest rise in average rental prices across the UK, other factors may be at play. Read on to see how your region has faired...
Rental prices are on the rise across the UK
Average monthly rent in the UK increased to £771 in the second quarter of 2019, with tenants now expected to pay £14 more than the previous quarter (£757). Year on year, average monthly rents have also increased by £7 from £764. Significantly, this is the first time we have seen an increase on this scale since rental prices began to decline in Q4 2017.
Scotland sees a £32 increase in rental prices
While the majority of UK regions have seen an increase in average rents, Scotland saw the largest increase of £32 from £594 to £626. This may be driven by the large number of flats in the region, as the property type has seen a sharp increase of £57 from last quarter. Unsurprisingly, London has maintained its lofty position as the most expensive region in the UK to rent a property, with average rents now sitting at £1,319. If you'd like a relative bargain, get yourself up to Northern Ireland, where average rents stand at £521 - £250 cheaper than the national average.
The West Midlands and Northern Ireland are the only areas to see a decline. Rents in the West Midlands have declined by £8 from £629 to £621, while in Northern Ireland, average rent has dropped by £6 to £521.
Our Head of Client Management, James Garvey said...
"It has been widely anticipated that The Tenant Fees act introduced on 1 June 2019, banning letting fees and capping security deposits, would lead to increased rents.
Though average rents have risen overall, it’s too early to tell if this is a result of the fees ban.
It’s worth noting that the ban on letting fees from 1 June only applied to tenancies in England. With average rents rising significantly in Scotland from Q1 to Q2 and nominally in Wales, this may indicate other factors are contributing to the sudden upward trend."