DPS Rent Index Q3 2021 Regional Summaries

London

After declining in the past quarter, average rents in London have started to pick up rising,  by £25 (1.90%) from £1,314 to £1,339 in Q3 2021. Year-on-year, the increase is less pronounced, with a rise of £17 (1.29%) from £1,322.

When looking at property types in London, detached houses saw the largest growth in average rent, from £1,764 to £1,857 (£93 or 5.27%), after registering the largest decline in Q2 2021 (-£29, -1.62%). This was also the biggest rise across all regions.

On the other hand, terraced properties in London have seen a -£6 (-0.36%) reduction in average rent to £1,658. The only other region where we recorded a drop for terraced houses was Wales (-£26, -4.06%).

A notable shift in the last twelve months is the increase in the number of deposits protected for properties in London. Compared to Q3 2020, the number of deposits protected are up 17% and in the last six months are up by over 30% compared to the same six month period in 2020

The top 5 most expensive UK boroughs to live in are all in London: City of London, Hackney, Westminster, Kensington & Chelsea, and Wandsworth.

Average salaries in London are at £41,017, meaning that Londoners typically spend 39.48% of their income on rent. This is an increase on previous quarters, indicating that rent is, on average, proportionally more expensive to what it was in previous periods.

 

South East

Average rents stand at £949 in the South East, an increase of £12 (1.28%), from £937 since last quarter. Year on year, we see a sharper rise of £49 (5.44%) from £900, which is one of the largest across all regions. After London, the South East is the second most expensive region for average rents.

All property types show an increase in the region, and detached properties have experienced the greatest growth, rising £34 (2.40%), from £1,419 to £1,453 in the last quarter.

Kent recorded the largest increment of £56 (6.51%) this quarter, whilst Bracknell Forest saw the smallest rise of £4 (0.42%) across the region. No county in the South East experienced a decline in rents this quarter.

With average annual income at £33,004 in the region, those in the South East can expect to spend 34.77% of their income on rent, above the national average of 31.44%.

 

South West

In line with the national trend, average rents are on the increase in the South West and have seen a £18 (2.26%) quarterly rise from £797 to £815. Year-on-year there was a sharper increase of £53 (6.96%), which is one of the largest we recorded across the UK.

The biggest growth by property type can be seen amongst detached properties. For the South West, this is a £37 (3.22%) rise from £1,150 to £1,187. All other property types have also seen a rise in average rents this quarter.

Devon is the only county in the South West to register a decline of -£3 (-0.40%), whilst South Gloucestershire shows the sharpest rise in average rents (£47, 5.13%). Bath & North East Somerset is now the 2nd least affordable county in the UK after the City of London.

With average salaries standing at £29,529, those in the South West can typically expect to spend 33.38% of their income on rent, higher than the national average of 31.44%. This is very similar to what we recorded in Q2 2021.

 

East

Average rents have seen both, a quarterly and yearly increase in the East. Compared to last quarter, rents have increased by £16 (1.86%) on average, from £860 to £876 this quarter. Year-on-year, this is a £61 (7.48%) rise from £815.

While all property types saw growth this quarter, detached properties show the largest increment, rising by £67 (5.63%) on average, from £1,191 to £1,258.

All areas within the region have seen a rise, with Norfolk recording the biggest increase of £63 (8.86%) from £711 to £774, and Bedford the smallest (£1, 0.13%).

With salaries averaging £31,044 in the East, those in the region can expect to put 34.12% of their income towards rent, well above the national average.

 

East Midlands

With average rents at £642 in the East Midlands, we have seen a £16 (2.56%) rise from £626 last quarter. Year-on-year, the increase is greater, at an average of £43 (7.18%) from £599.

All property types show an upward movement in average prices, aligning with the national trend. Detached properties registered the greatest growth, rising by a value of £39 (4.15%) from £939 to £978.

All counties have seen growth this quarter, with Nottingham recording the largest in the region, rising by £32 (5.28%). Leicester was the only county to see a year-on-year fall of -£36 (-5.75%).

On average, salaries stand at £29,102 in the East Midlands, meaning residents typically spend 26.68% of their income on rent in the region.

 

West Midlands

The West Midlands experienced the largest regional growth this quarter compared to the rest of the UK, standing at £671. Last quarter, rents averaged at £645, meaning a £26 (4.03%) increase in Q3 2021. Year on year, this is a £48 (7.70%) rise from £623.

While all property types in the region recorded a rise in average rents, detached properties see the biggest increase, rising by £59 (6.38%), from £925 to £984, and terraced houses show the smallest, from £679 to £686 (£7, 1.03%).

Almost all counties recorded some degree of growth in average rents. The West Midlands in particular have seen the highest level, showing an average increase of £45 (7.08%). Stoke-on-Trent was the only area to record a reduction of just -£7 (-1.36%) compared to last quarter.

Average salaries are at £29,516 in the West Midlands, meaning those in the region typically spend 27.49% on rent, less than the national average.

 

Yorkshire

Yorkshire has seen the smallest increase in average rents this quarter, from £562 to £563 (£1, 0.18%), and the smallest increase year-on-year (£5, 0.90%).

Despite this, detached houses have recorded a significant rise from £864 to £907 (£43, 4.98%).  On the other hand, Yorkshire was the only region in which average rents for semi-detached properties didn’t register any growth, remaining at £683.

East Riding of Yorkshire and North East Lincolnshire were the two counties showing the biggest rise in rents, growing by £13 (2.18% and 2.74% respectively), whilst South Yorkshire and North Lincolnshire recorded a decline of -£10 (-1.81%) and -£11 (-2.17%), respectively. North Lincolnshire and North East Lincolnshire rank among the top 5 least expensive counties in the UK and also featured is the City of Kingston upon Hull.

Those in Yorkshire spend the lowest proportion of their income on rent when compared to the rest of the UK. Average salaries in the region stand at £28,745, meaning that 23.69% of their income is typically spent on rent.

 

North West

After dropping last quarter, average rents in the North West increased by £8 to £635 (1.28%). Year-on-year, there is a rise of £29 (4.79%) from £606.

In line with the national trend, all property types see a rise in the North West and detached houses show the largest growth, from £953 to £987 (£34, 3.57%).

Warrington & Cheshire East recorded the largest quarterly increase in average rents, rising by £28 (4.24% & 4.11% respectively). In contrast, the biggest decline can be seen in Halton, falling by -£24 (-3.96%).

On average, salaries stand at £29,558 in the North West, and those in the region typically spend 25.98% of their annual income on rent. This sits well below the national average of 31.44%.

 

North East

Rents in the North East stand at £549, making this region the cheapest in the UK. Despite this, it recorded a rise of £19 (3.58%) from £530 during this quarter. Year-on-year, there was a similar increase of £20 (3.78%) from £529.

The average rental values of detached properties registered the largest growth in the area and one of the largest in the UK, rising by £55 (7.17%) from £767 to £822, whilst terraced houses saw the smallest increase (£9, 1.72%).

Looking at the counties, Hartlepool shows the largest decline to £458 (-£15, -3.17%), whilst Redcar & Cleveland saw the largest increase to £552 (£36, 6.98%).

After those living in Yorkshire, those in the North East spend the lowest proportion of their income on rent. In fact, average salaries in the North East stand at £27,856, meaning that 23.83% of income is typically spent on rent within the region.

 

Scotland

Average rents in Scotland have seen an upward trend this quarter, which aligns with the UK average, rising by £12 (1.85%) from £650 to £662. The region has also recorded an increase year on year, growing by an average of £29 (4.58%) from £633.

Interestingly, Scotland was the only UK region to record a decline in rents for detached properties (-£113, -11.30%) from £1,000 to £887. In contrast, semi-detached properties saw a sharp increase to £734 (£61, 9.06%).

Aberdeenshire & Dundee City registered the biggest increments in rents of £67 this quarter (10.42% and 12.09% respectively), whilst Renfrewshire and Glasgow City are the only two counties to drop back, with reductions of -£43 and -£19, respectively (-7.61% & -2.65%).

With salaries averaging £31,605 in Scotland, those in the region can expect to put less of their income towards rent, at 25.33%.

 

Wales

Wales was the only region where average rents dropped back slightly. In fact, there was a decline of -£5 (-0.80%) from last quarter and the average rent shifted from £626 to £621. Despite this, the region has seen a rise of £29 (4.90%) compared to Q3 last year.

In terms of property type, detached properties show the largest percentage growth increase across all regions in the UK, with average rent growing from £781 to £856 this quarter (£75, 9.60%), whilst terraced houses saw a decline of -£26 (-4.06%) to £615.

Seven counties in Wales registered a reduction in average rents, with Cardiff showing the largest drop of -£21 (-2.63%). In contrast, Pembrokeshire’s average rents picked up by £38 (7.20%) and this is the largest increment in the region.

With average salaries at £28,125 in Wales, those in the region typically spend 26.70% of their income on rent, below the national average of 31.44%.

 

Northern Ireland

Northern Ireland has seen a £9 (1.61%) increase in average rents, rising from £558 to £567.

Year on year, we see the same upward trend, but to a larger extent, rising by £31 (5.78%) from £536.

Northern Ireland remains third lowest in average rents in the UK, just behind Yorkshire and the North East.

With salaries averaging at £28,324 in Northern Ireland, those in the region can typically expect to spend 24.21% of their income on rent, well below the national average.