The latest issue of the DPS Rent Index is here!
If you have your finger on the pulse of the Private Rented Sector (PRS) and are a keen follower of The DPS Rent Index, you’ll have noted the overall downward trend of average rents in the UK during 2018. It looks like 2019 may follow the same trend…
Average UK rent down again in Q1 2019!
Average monthly UK rent fell to £757 in the first quarter of 2019, with tenants paying £5 less than the previous quarter (Q4 2018). Significantly, year on year average rents have fallen from £772 in Q1 2018 to £757 in Q1 2019 and are now at their lowest point since Q1 2016. This may be driven by tenants not choosing to move properties until after the Tenant Fees Ban comes into effect on 1 June.
What does this mean for your region?
The overall rental decline is reflected in the majority of UK regions, with only the South West, East Midlands, Yorkshire and The Humber and Wales seeing minimal increases in average rent.
It’s no real surprise that London continues to be the most expensive region in which to rent property, but the region has seen consistent average rents over the past three quarters, following a sharper drop in the first half of 2018.
If you’d like to live in a region that has comparatively cheaper average rents than the rest of the UK, the North East remains your best bet. Average rents now stand at £513 this quarter, which is just over £244 lower than the national average.
Head of Tenancy Deposit Protection, Daren King
“The depressed market for rents is part of the larger slowdown that began during the summer of 2016 and which we believe is linked to broad economic factors affecting spending power and demand in the UK.
We also believe that the rental market may be experiencing a period of tenant inactivity driven by uncertainty ahead of the imminent enforcement of the ban on tenancy fees from 1 June.
Even after a long period of stagnation, we don’t see many signs of a recovery anytime soon and it’s possible there will be more quarters of low or negative growth this year.”
You can read the full report here.