As we usher in a new decade, it’s clear that apart from a dip in 2018, average rent has continued to rise over the last 10 years. In contrast, the percentage of wages being spent on rent has fallen since its peak in 2016. With the average UK salary increasing by 2.69% over the last 12 months to £30,353 and the percentage of wages spent on rent falling to 30.80% this quarter, our data suggests renting is now relatively more affordable than at any time since 2013.
How has the rental market reacted to the introduction of the Tenant Fees Ban and Deposit Cap?
Some commentators thought that rents would rise to counter the impact felt by landlords and letting agents but we haven’t seen this materialise. Instead we’ve seen average deposit values decrease as landlords respond to the new Deposit Cap legislation.
Analysis of the deposits we’ve protected since the introduction of the fees ban shows that the average deposit has decreased to £828, which is £77 less than £905 in the six-month period prior to the legislation coming in to force on 1 June 2019.
The UK experiences a marginal decrease in average rents for the last quarter of 2019
Average monthly rent in the UK now stands at £773, a marginal decrease (£4) on Q3 2019. Year on year, the picture is a little different. Following the downward trend observed throughout 2018, average rents have increased by £11 in the 12 months from Q4 2018.
Northern Ireland has seen the biggest increase across the UK, from £532 to £548 – a £16 increase this quarter. At the other end of the spectrum, average monthly rent in Yorkshire and The Humber decreased by £27, from £551 to £524.
London continues to be the most expensive region in which to rent property. The capital saw a £13 increase in average monthly rent, rising to £1,345 in Q4 2019. This is 2.6 times the average monthly rent of £518 paid in the UK’s cheapest region, the North East. Year on year the value is even higher. Average monthly rent in the region has climbed by £55 compared to this time last year.
Matt Trevett, Managing Director of The DPS said...
“Although rents have risen over the past decade, other changes since 2016 have helped ensure renting has become on average more affordable.
“Predictions that rents would rise in response to the introduction of the tenant fees ban and deposit cap do not seem to have materialised, with many landlords seemingly declining to increase rents since last summer.”