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Average Rent Prices Rise Significantly for First Time in Two Years
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Average rent prices in the UK saw an increase during the second quarter of this year (2019), according to the latest edition of The Deposit Protection Service (The DPS) Rent Index.
The average rent rose from £757 to £771 (1.79%).
This report highlights that 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, said: “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.”
This report from the DPS also states that monthly average rent prices have increased by £7 (0.87%) from £764 year on year.
London also saw its first increase in average rent since the last quarter of 2017, which rose from £1,288 in Q1 2019, to £1,319 in Q2 2019 (2.42%).
Looking outside of London, the monthly average rent for the rest of the UK now stands at £673, showing an increase of £10 (1.5%) on the last quarter. This is also a marginal increase of £2 (0.25%) compared with the same quarter last year.
All property types have seen a rise in average rent across the UK, but the largest increase has been witnessed for terraced properties, with averages rising from £699 to £731 (4.59%).
