Residential rents rise again, Q1 data reveals

Data released by The DPS (Deposit Protection Service) average UK rents have increased for the sixth consecutive quarter.

The UK's largest protector of deposits, which safeguards 1.8m rent securities, reports that average rents now stand at £849 a month: a £15 (1.80%) increase on £834 in Q4 2021, and a £49 (6.13%) increase on £800 in Q1 2021.

According to The DPS, there is also evidence that some tenants are paying above the going rate to secure a property.

The organisation's quarterly Rent Index suggests that London rents have risen the most in value, increasing £34 (2.46%) on Q4 2021 and £90 (6.79%) since Q1 2021.

London property: average rents by property type

 

Property type

Q1 2022

Q4 2021

Q1 2022 vs Q4 2021 (£)

Q1 2022 vs Q4 2021 (%)

Q1 2022 vs Q1 2021 (%)

Flats

£1,416

£1,385

£31

2.24%

8.51%

Terraced

£1,766

£1,670

£96

5.75%

5.50%

Semi-detached

£1,765

£1,729

£36

2.08%

5.06%

Detached

£1,966

£1,872

£94

5.02%

9.65%

All

£1,415

£1,381

£34

2.46%

6.79%

 

The report also describes how flats saw the largest quarterly rise in rents during Q1 2022 — a first for the property category since the start of the coronavirus pandemic, with rents rising £16 (1.89%) to £863.

The results of the DPS Q1 also highlights how 15% of tenants who responded paid more than advertised rents to secure their property.

Matt Trevett, Managing Director at The DPS, said: “Consistent quarterly rent rises – coupled with survey results that suggest that a proportion of tenants are overpaying to secure a property – underline the current intense demand for, and tight supply of, rental homes in the UK.

“Rents in London are also rebounding strongly, with average rents for flats in the capital increasing by £111 or just under nine per cent during the past twelve months – more than three times the falls seen during 2020, when tenants perhaps sought out more spacious homes outside of the capital.

Accelerating rents for flats could signal the beginning of the end of the pandemic trend of renters leaving cities.”

Of the 15% of DPS tenant customers who overpaid rents to assure themselves of a rental property, 43% said they were 'desperate to secure a property' and 26% said there was 'nothing else available'.

 

Property Type

 Q1 2022

Q4 2021

Q1 2022 vs Q4 2021 (%)

2022 Q1 vs 2021 Q1 %

 

 

     

Flats

£863

£847

1.89%

6.81%

Terraced

£821

£810

1.36%

6.76%

Semi-detached

£920

£905

1.66%

7.10%

Detached

£1,158

£1,143

1.31%

8.43%

 

 

Region

Average Rent Q1 2022

Change since Q4 2021 (£)

Change since Q4 2021 (%)

Change since Q1 2021

UK

£849

£15

1.80%

6.13%

London

£1,415

£34

2.46%

6.79%

South East

£980

£19

1.98%

5.15%

South West

£833

-£1

-0.12%

5.44%

East

£894

£11

1.25%

5.67%

East Midlands

£656

£16

2.50%

7.19%

West Midlands

£696

£11

1.61%

7.57%

Yorkshire

£580

-£2

-0.34%

5.65%

North West

£656

£11

1.71%

4.29%

North East

£565

£11

1.99%

1.44%

Scotland

£675

£18

2.74%

4.01%

Wales

£652

£11

1.72%

6.89%

Northern Ireland

£581

£10

1.75%

3.94%