London rents fall back during Q2 2021, says The DPS

Bristol – Average rents in London declined during the second quarter of 2021, according to The Deposit Protection Service (The DPS).

In the latest edition of its quarterly Rent Index, which is based on a database of millions of properties around the UK, The DPS revealed that the average monthly cost of renting property in the capital decreased £11 (-0.83%) between April and June this year to £1,314, down £31 overall from Q2 2020 (-2.30%).

The DPS’ figures also showed a starker decrease in average rent for flats in London during the last 12 months: £45 from £1,346 to £1,301 (3.34%).

For the UK as a whole, the Index showed a slight increase in average monthly rent from £782 to £804 (£22 or 2.81%) between Q2 2020 and Q2 2021.

Matt Trevett, Managing Director at The DPS, said: “The figures for the second quarter of 2021 again suggest decreased demand for renting in London, particularly for smaller properties.

“Although average London rent increased slightly between January and March this year, the decline we’ve seen since reflects a broader trend of lower rents in the capital during the pandemic.

“The slight increase in average UK rents also reflects a continuation of the steady, general increase since coronavirus arrived – particularly for semi-detached and detached homes.

“It seems likely that these figures reflect a continued desire among tenants to move away from cities, particularly because of changes such as homeworking, although with restrictions due to lift soon and with many companies making plans for a return to offices, we will have to see if the trend continues.”

Outside London people in the South East paid the most (£937) in rent during Q2 2021, said the organisation.

The North East is the cheapest region in the UK to rent, with rents declining £27 (4.85%) to £530 during Q1 2021.

 

Region Average Rent Q2 2021 Change since Q1 2021 Change since Q2 2020 £ Change since Q2 2020 %
UK £804 £4 £22 2.81%
London £1,314 -£11 £31 -2.30%
South East £937 £5 £51 5.76%
South West £797 £7 £33 4.32%
East £860 £14 £41 5.01%
East Midlands £626 £14 £35 5.92%
West Midlands £645 -£2 £27 4.37%
Yorkshire £562 £13 £16 2.93%
North West £627 £2 £23 3.81%
North East £530 -£27 £6 1.15%
Scotland £650 £1 £12 1.88%
Wales £626 £16 £42 7.19%
Northern Ireland £558 £1 £16 2.95%

 

Region Q2 2021 Q1 2021 Q1 2021 vs Q2 2021 (%) Q2 2020 2021 Q2 vs 2020 Q2 (%)
Flats £812 £808 0.50% 0.50% 1.50%
Terraced £783 £769 1.82% £739 5.95%
S-detached £874 £859 1.75% £822 6.33%
Detached £1,079 £1,068 1.03% £1,008 7.04%

 

For more information, see: https://www.depositprotection.com/news/latestnews/2021/uk-rents-hold-steady-as-inflation-looms-the-dps-rent-index-q2-2021

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