The latest edition of The Deposit Protection Service Rent Index has revealed that the UK experienced a sharp rise in average rent – from £757 to £771 (up by 1.79%) – during the second quarter of 2019.
The report found that the increase in rents between April and June is the first significant uplift in rents since the average monthly UK rental price started to fall in the last quarter of 2017.
“The increase in rents during the second quarter of 2019 is striking, after a prolonged period of stagnation in the market,” Daren King, head of tenancy deposit protection at The DPS, said.
“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.”
King added that, given the economic factors that were behind the decline in rent prices remain relatively unchanged, ‘it will be interesting to see if the upward trend increases between July and September’.
Year-on-year, the DPS report also revealed that average monthly rents rose by £7 (0.87%) from £764. London, meanwhile, witnessed its first rise in average rent since the last quarter of 2017, from £1,288 in Q1 2019 to £1,319 in Q2 2019 (an increase of 2.42%).
Away from the capital, average monthly rent now stands at £673, a rise of £10 (1.5%) on the last quarter, and a small increase of £2 (0.25%) compared with the same quarter last year.
All property types experienced an increase in average rent across the UK, but the largest growth was seen for terraced properties, rising from £699 to £731 (up by 4.59%).
The report found that, on average, UK renters are spending 32% of their wages on rent.