DPS Rent Index Q4 2021 Regional Summaries
- DPS Rent Index Q4 2021 Regional Summaries
- Average rents in London increased for the second consecutive quarter, rising by +£42 (+3.14%) from £1,339 to £1,381, the largest increase across all regions. Inner areas show the biggest growth (+£54, +3.85%). Outer London growth is below the UK average (+£21 or +1.67%).
- Year-on-year, rents rose +£64 (+4.86%) from £1,317.
- When looking at property types in London, flats have seen the largest growth in average rents, up +£48 (+3.59%), from £1,337 to £1,385. This was also the biggest increase across all regions. Terraced properties in London have seen the smallest increase, rising +£12 (+0.72%) to £1,670, this rise counteracts the slight reduction in rents seen in Q3 2021 (-£6, -0.36%).
- The top five most expensive boroughs to live in the UK are all in London: City of London, Kensington & Chelsea, Islington, Westminster, and Wandsworth. These are also the least affordable boroughs. Moreover, Islington, Kensington & Chelsea and The City of London have seen the sharpest rise in rents nationally, with increases of +£273 (+19.60%), +£191 (+12.78%) and +£167 (+10.42%) respectively.
- The average salary in London is £39,716 (from £40,994 in 2020), meaning that Londoners typically spend 42.05% of their monthly income on rent.
- Average rents stand at £961 in the South East, an increase of +£12 (+1.26%), from £949 in the last quarter. This is the same increase we recorded during Q3.
- Year on year, we see a sharper rise of +£38 (+4.12%) from £923.
- The South East remains the second most expensive region to rent after London.
- Detached properties in the South East experienced the greatest growth in any region, rising by +£65 (+4.47%) from £1,453 to £1,518. However, the South East was one of three regions where the average rental value for flats declined, a fall of -£4 (-0.47%) to £846.
- Milton Keynes recorded the largest rental growth in the region this quarter up +£36 (+3.60%), followed by Brighton and Hove at +£35 (+3.24%). Southampton has seen the largest decline in the region down -£122 (-15.12%). Bracknell Forest, Medway, Portsmouth and Reading also saw average rents fall.
- With average annual income at £32,810 in the region, renters in the South East can expect to spend 35.42% of their income on rent, which is above the national average of 24%.
- Rental values increased in the South West this quarter, up +£19 (+2.33%) from £815 to £834. Average rents in the region now equal the UK national average.
- Year-on-year, average rents increased +£54 (+6.92%), the largest increase recorded across the UK by percentage and the second largest after London by value.
- By property type, the largest rise in rental values is for detached properties, up +£33 (+2.78%) to £1,220. All other property types also saw a rise in average rents this quarter.
- Most areas in the South West show a significant rise in rents, with Bournemouth, Christchurch, and Poole at +£51 (+5.72%) increasing the most. Plymouth saw the largest decline this quarter, falling -£18 (-2.83%).
- With average salaries standing at £29,080, tenants in the South West can expect to spend 34.68% of their monthly income on rent, higher than the national average of 32.24% and up from Q3 2021 (33.38%).
- Average rents in the East have seen a small increase this quarter, rising by +£7 (+0.80%) on average, from £831 to £883. Year-on-year, the increase is more pronounced, rising +£52 (+6.26%).
- Terraced properties are driving the growth in average rents in the region, up +£16 (+1.74%) to £938. All other property types show minimal rent increases, between +£1 to +£3.
- Whilst all areas within the region saw rents rise last quarter, this quarter six counties show a decline in rents, with Cambridgeshire and Norfolk recording the largest falls, -£30 (-3.58%) and -£20 (or -2.58%) respectively. It is worth noting that Norfolk saw the biggest increase in Q3 2021 with a rise of +£63 (+8.86%).
- With salaries averaging £30,867 in the East, tenants in the region can expect to pay 34.59% of their monthly income towards rent.
- Average rents in the East Midlands show a slight decline of -£2 (-0.31%) from £642 to £640, the first fall recorded in the region in 2021. Year-on-year, rental values show an increase of +£28 (+4.58%).
- The quarterly decline has been driven by detached properties, with rents falling by -£6 (-0.61%) to £972. All other property types have remained relatively stable with no change in average rental value for semi-detached houses, and small increases for flats and terraced properties of +£4 (+0.70%) and +£6 (+0.92%) respectively.
- Whilst all counties saw growth last quarter, three areas recorded a decrease, Derby -£30 (-5.19%), Leicester -£11 (-1.86%), and Nottingham -£8 (-1.25%). Nottingham was the area with the biggest increase in Q3 2021, +£32 (+5.28%).
- Average salaries stand at £28,416 in the East Midlands, with tenants in the region expected to spend 27.24% of income on rent.
- Average rents in the West Midlands now stand at £685, an increase of +£14 (+2.09%) from Q3 2021. Year-on-year, rental values have risen +£38 (+5.87%).
- While all property types in the region recorded a rise in average rents, semi-detached properties have seen the biggest increase, rising by +£21 (+2.76%), from £760 to £781. Year-on-year, detached properties in the region have seen one of biggest rises compared to the rest of the UK, up +£100 (+11.10%) from £901 in Q4 2020 to £1,001 in Q4 2021.
- Almost all counties in the region recorded some growth in average rents. The county of Herefordshire saw the highest quarterly rise, increasing +£17 (+2.45%), whilst Shropshire has seen the biggest yearly rise, up +£60 (+9.63%).
- Average salaries are at £30,000 in the West Midlands, with those in the region typically needing to spend 27.61% of their wages on rent.
- Average rents stand at £582 in Yorkshire, an increase of +£19 (+3.37%) since the last quarter. Year-on-year, rents have increased +£36 (+6.59%).
- While all property types have seen growth this quarter, flats show the largest rise, up +£47 (+8.92%) from £527 to £574. In terms of monetary value, this is the second largest increase after London.
- York is the area where rents have grown most, an increase of +£71 (+9.49%) to £819.
- Despite the overall strong growth in Yorkshire rental values, The City of Kingston upon Hull and North East Lincolnshire remain among the top five least expensive counties to rent in the UK, ranked second and fifth respectively.
- Average salaries in the region stand at £28,808, meaning that tenants spend on average 24.43% of their income on rent, lower than the national average of 32.24%.
- Average rents in the North West have risen +£10 to £645 (+1.57%). Year-on-year, rents are up +£29 (+4.71%).
- Rental values have grown for all property types across the region, with detached houses showing the largest growth, up +£47 (+4.76%), from £987 to £1,034. In terms of percentage growth, this is the largest increase for detached properties across all regions this quarter, whilst in monetary value, it’s the second largest rise after the South East.
- At county level, Lancashire recorded the largest quarterly increase in average rents, rising by +£30 (+5.42%) to £584.
- On average, salaries in the North West stand at £29,529, with tenants in the region typically spending 26.41% of their annual income on rent.
- The North East has seen the second smallest increase in average rents this quarter, with average rents growing +£5 (+0.91%) to £554.
- Average rental values for terraced properties and semi-detached saw an increase of +£11 (+2.07% & +1.78% respectively on their Q3 2021 values). However, rental values for flats fell by -£16 (-2.90%). The North East is one of the three UK regions that saw rental values for flats decline, along with the South East and Scotland.
- Middlesbrough is the area that saw the largest increase in average rental values, up +£33 (+6.56%) to £536.
- Two areas of the North East are in the top three least expensive counties to rent in the UK. Hartlepool at £449 is the cheapest nationally, with County of Durham at £492 in third place.
- Renters in the North East spend the lowest proportion of their income on rent when compared to the rest of the UK. Average salaries in the region stand at £27,515, with 24.35% of their income typically spent on rent.
- Average rents in Scotland have seen a -£5 (-0.76%) decline this quarter, from £662 to £657. This is the largest decline this quarter, and with the East Midlands, one of only two regions where average rents have fallen.
- The region has also recorded the smallest increase year on year, up +£5 (+0.77%), from £652 to £657.
- Scotland is also the only UK region to have seen a decline in rents for terraced properties, falling -£21 (-3.18%), from £661 to £640. The region also recorded the largest decline for flats, down -£23 (-3.50%), from £657 to £634. Semi-detached and detached properties picked up slightly, rising +£9 (+1.23%) and +£5 (+0.56%) respectively).
- Glasgow City registered the largest drop in rents, down -£133 (-19.08%) to £564, followed by Highland, falling -£50 (-7.67%) to £602, and Fife which fell -£35 (-5.77%) to £572. Aberdeenshire and Falkirk saw the biggest rises. Aberdeenshire rose +£105 (+14.79%) to £815, and Falkirk up +£85 (+14.99%) to £652.
- With salaries averaging £31,672 in Scotland, tenants in the region can expect to spend 25.09% of their monthly income on rent.
- After a slight fall in Q3 2021, average rents in Wales rose this quarter, up +£20 (+3.22%), from £621 to £641. Year-on-year, the region has seen rental values rise +£35 (+5.78%).
- Terraced properties show the largest percentage growth in the region, with average rents growing +£41 (+6.67%), from £615 to £656 this quarter.
- Detached houses fell -£32 (-3.74%) to £824 from Q3 2021. This was the largest decline for detached properties recorded across all regions this quarter.
- Most counties registered increases in average rents in Wales, with Merthyr Tydfil showing the largest rise of +£58 (+10.41%), from £557 to £615. Merthyr has also seen the biggest growth in average rents year-on-year, up +£107 (+21.06%).
- Average salaries in Wales stand at £28,506 with 27.19% of monthly income spent on rent.
- Northern Ireland has seen the smallest increase in average rents this quarter, up +£4 (+0.71%), from £567 to £571. Year-on-year, Northern Ireland saw the second smallest growth in average rents after Scotland, rising by +£20 (+3.63%).
- Northern Ireland is now the second cheapest UK region in which to rent (£571), replacing Yorkshire (£582) and just behind the North East (£554).
- With salaries averaging at £29,109 in the region, tenants can typically expect to spend 23.72% of their income on rent.