DPS Rent Index Q1 2022 Regional Summaries
- DPS Rent Index Q1 2022 Regional Summaries
- Average rents in London pick up for the third consecutive quarter and rise by +£34 (+2.46%) from £1,381 to £1,415. This is the largest value increase across all regions, although slightly less compared to last quarter’s increase of +£42 (+3.14%). Inner London registers the sharpest growth (+£40 or +2.75%) compared to outer London (+£32 or +2.50%), but both increases are well above the UK average of +£15 (+1.80%).
- Year-on-year, the increase is more pronounced, with a rise of +£90 (+6.79%) from £1,325. Again, this is the largest growth across all regions. The increase rises to +£115 (+8.32%) when looking at Inner London, perhaps signalling demand from renters moving back to city centre locations, reversing the trend seen during the pandemic.
- In terms of property types, terraced houses see the largest growth in average rent, from £1,670 to £1,766 (+£96 or +5.75%), whilst flats see the smallest increase (+£31 or +2.24%) after last quarter, when the average rent for flats recorded the sharpest growth across all regions, moving from £1,337 to £1,385 (+£48 or +3.59%). Year-on-year, average rents for flats have increased significantly, from £1,305 to £1,416 (+£111, +8.51%) showing a return in demand during the past 12 months.
- Inner London is the least affordable place to live across the UK, with average rents of £1,497, followed by Bath and North East Somerset, with average rents of £1,059.
- Average rents stand at £980 in the South East, an increase of +£19 (+1.98%), from £961 since last quarter. This rise is slightly above the UK average and it’s the second largest across the UK, after London.
- The South East remains the second most expensive region for average rents, after London.
- Flats experienced the greatest growth across all property types, rising by +£23 (+2.72%) from £846 to £869, after a slight decline during Q4 2021.
- After seeing the sharpest reduction last quarter (-£122 or -15.12%), Southampton has recorded the largest increment of +£71 (+10.36%) in Q1 2022, followed by Reading with +£47 (+5.23%). As mentioned before, this could be a sign of renters returning to city centre locations, after moving away in the past couple of years.
- Interestingly, average rents in the South West have seen a slight drop (-£1 or -0.12%) from £834 to £833, after consistent growth during 2021 and before. Year-on-year there was an increase of +£43 (+5.44%), which is close to the UK average of +£49 (+6.13%).
- The biggest growth by property type can be seen amongst detached properties for the second consecutive quarter. This is a +£17 (+1.39%) rise from £1,220 to £1,237. Flats remain static at £739, with no increase on last quarter.
- Counties such as Bath and North East Somerset, Bournemouth, Christchurch and Poole, and the City of Bristol all recorded a decline in rents of -£45 (-4.08%), -£5 (-0.53%) and -£3 (-0.31%), respectively.
- Average rents have seen both a quarterly and yearly increase in the East. Compared to last quarter, rents have moderately increased by +£11 (+1.25%) on average, from £883 to £894 this quarter.
- Year-on-year, this is a +£48 (+5.67%) rise from £846.
- While all property types see growth this quarter, flats show the largest increment, rising by +£25 (+3.13%) on average, from £800 to £825, whilst detached properties, which previously recorded the largest increase, have now slowed down and show the smallest rise (+£10 or +0.79%).
- Hertfordshire and Southend-on-Sea show a small decline in average rents (-£1 or -0.09% and -£10 or -1.12%, respectively), whilst Cambridgeshire and Luton registered the largest growth (+£49 or +6.06% and +£26 or +3.14%, respectively).
- With average rents at £656 in the East Midlands, we have seen a +£16 (+2.50%) rise from £640 last quarter. This is the same growth we recorded during Q4 2021.
- Year-on-year the increase is greater, at an average of +£44 (+7.19%) from £612.
- All property types show an upward movement in average prices, aligning with the national trend. Semi-detached properties register the greatest growth, rising by +£24 (+3.27%) from £735 to £759.
- Not all parts of the region have seen a rise this quarter. In fact, Leicester and Lincolnshire show a decline of -£12 (-2.07%) and -£7 (-1.17%). Derby records the largest growth, with rent going up by +£55 (+10.04%).
- After experiencing the largest regional growth during Q4 2021, the West Midlands has now slowed down, with a regional rent increase of +£11 (+1.61%), below UK average of +£15 (+1.80%).
- Year on year however, there is a +£49 (+7.57%) rise from £647 to £696.
- While all property types in the region recorded a rise in average rents, semi-detached properties see the biggest increase, rising by +£19 (+2.43%), to £800, and flats show the smallest gains, from £621 to £625 (+£4, +0.64%).
- All counties recorded some degree of growth, with Warwickshire seeing the sharpest rise (+£29 or +3.80%). The only exception is the County of Herefordshire, where rents declined by -£20 (-2.81%).
- After the South West, Yorkshire is the only other region where we see rents declining in Q1 2022. In fact, average rents now stand at £580 in Yorkshire, a decline of -£2 (-0.34%), from £582 since last quarter.
- Year on year, we see a rise of +£31 (+5.65%) from £549, which is below the national average of +£49 (+6.13%).
- The decline is mainly driven by flats, which see a drop of -£36 (-6.27%) compared to Q4 2021. On the other hand, rents for detached and semi-detached properties both rise by +£18 (+1.92% and +2.61%, respectively).
- After showing the biggest rise in rent in Q4, rents in York have now declined by -£31 (-3.79%). The City of Kingston Upon Hull also dropped to £478 (-£7 or -1.44%). The City of Kingston Upon Hull is also the third least expensive county in the UK.
- Average rents in the North West have seen an upward trend this quarter, registering a rise of +£11 to £656 (+1.71%). Year-on-year, there is a rise of +£27 (+4.29%) from £629.
- As opposed to Q4 2021, the average rent for detached properties has now declined by -£17 (-1.64%) to £1,017, whilst flats show an increase of +£16 (+2.59%), in line with the UK average (+£16, +1.89%) and most regions.
- Rents in Greater Manchester picked up the most at +£30 (+4.29%), followed by Cheshire West and Chester (+£28 or +3.92%).
- The North East continues to see some growth in average rents, with an increase of +£11 (+1.99%) to £565.
- Year-on-year, the region recorded the smallest rise of +£8 (+1.44%) from £557.
- The North East is now the region with the lowest rents in the UK (£565), followed by Yorkshire (£580) and Northern Ireland (£581).
- After experiencing some growth in previous quarters, the average rental values of terraced properties and semi-detached decline by -£3 (-0.55%) and -£5 (-0.79%) respectively, whilst rents for flats pick up by +£20 (+3.73%), after a drop in Q4 2021. The rise is above the UK average of +£16 (+1.89%).
- Within the Region, Middlesbrough shows the largest decline to £514 (-£22 or -4.10%) after experiencing the largest rise in Q4 2021. Stockton-on-Tees, Northumberland, Darlington, and Tyne and Wear also showed a decline.
- Hartlepool, in the North East, remains the least expensive county across all the UK for the second quarter in a row.
- Average rents in Scotland have seen a +£18 (+2.74%) rise to £675, after declining last quarter.
- The region has also recorded growth year on year, increasing by an average of +£26 (+4.01%) from £649.
- Interestingly, Scotland is the region recording the largest decline in rents for detached properties (-£45 or -5.04%) from £892 to £847 and for semi-detached (-£36 or -4.85%) from £743 to £707. Moreover, it is also the region with the largest rise in average rents for flats, from £634 to £676 (+£42 or +6.62%).
- Glasgow City picked up by +£196 (+34.75%) to £760, after a drop in Q4 2021.
- Two of the top five most affordable counties in the UK are also located in Scotland: Dumfries and Galloway, and South Ayrshire.
- Wales saw an increase for the second consecutive quarter, with average rents rising by +£11 (+1.72%) from £641 to £652.
- The region has also seen a rise of +£42 (+6.89%) compared to Q1 2021, which is in line with the UK average of +£49 (+6.13%).
- In terms of property type, detached properties show the largest percentage growth in the region, with average rents growing from £824 to £844 this quarter (+£20, +2.43%) after a sharp decline during Q4 2021.
- Most areas have seen an increase in average rents in Wales, with Cardiff showing the largest rise of +£60 (+7.47%).
- Northern Ireland has seen the smallest increase in average rents for the second consecutive quarter, from £571 to £581 (+£10, +1.75%).
- Year on year, Northern Ireland has also registered the second smallest increment after the North East, rising by +£22 (+3.94%).
- Northern Ireland now ranks as the third lowest region for rents in the UK (£581), following the North East (£565) and Yorkshire (£582).