Rents on detached homes increased twice as fast as the average for all UK properties during Q3 2021, according to The Deposit Protection Service (The DPS).
The UK’s largest protector of deposits said that average rents for detached properties during Q3 2021 rose £38 (3.52per cent) from £1,079 to £1,117, with rents on detached London properties rising £93 (5.27per cent) from £1,764 to £1,857 and rents on detached West Midlands properties rising £59 (6.38per cent) from £925 to £984.
By comparison, the organisation said that average UK rent increased by £14 (1.74per cent) from £804 to £818 during Q3 2021.
The DPS’ quarterly Rent Index also highlighted that the number of deposits registered for detached properties fell 17per cent between Q3 2020 and Q3 2021 and that rents on detached homes grew by £91 (8.87per cent) during the same period.
Rents for all categories of property rose during Q3 2021 and were all higher than during the same period last year (Q3 2020), said the organisation.
|Property Type||Q3 2021||Q2 2021||Q2 2021 vs Q3 2021 (per cent)||Q3 2020 (£)||2021 Q3 vs 2020 Q3 per cent|
|Flats||£830||£812||2.22per cent||£795||4.40per cent|
|Terraced||£792||£783||1.15per cent||£743||6.59per cent|
|S-detached||£891||£874||1.95per cent||£828||7.61per cent|
|Detached||£1,117||£1,079||3.52per cent||£1,026||8.87per cent|
Matt Trevett, managing director at The DPS, said: “Despite the roll-out of the coronavirus vaccination programme and the lifting of lockdowns, it seems that tenants are still prioritising more living space and are willing to pay for it. They are also staying in detached homes for longer and this, combined with lower availability of these properties, is driving up rents. The last quarter’s rent increases across all property types and most regions suggests a strong return of demand from tenants as employees start to go back into offices and students attend University in person this academic year.”
Paul Fryers, managing director at specialist buy-to-let Lender Zephyr Homeloans, said: “Evidence of strong tenant demand, particularly for detached homes during the last quarter, will help provide further valuable insight for landlords considering whether to invest in property this year. It is important that landlords wishing to purchase property take into account their own specific financial situation as well as current market conditions.”
The West Midlands experienced the highest rent increase during Q3 2021, growing 4.03per cent (£26) to £671, said the organisation.
The North East, still the cheapest region to rent a property, saw the second highest increase (3.58per cent) during Q3 2021, rising £19 from £530 to £549.
Rents in the South West saw one of the largest annual increases of £53 (6.96per cent), from £762 to £815, between Q3 2020 and Q3 2021.
Rents for all property types in the East of England rose 7.48per cent (£61) to £876 between Q3 2020 and Q3 2021, said the organisation, with average rents for detached homes rising £67 (5.63per cent), from £1,191 to £1,258, during the period.
Wales, the only region where overall rents fell during Q3 2021, saw a decrease of £5 (-0.80per cent) to £621.
The DPS said London rents grew on average 1.90per cent (£25) during Q3 2021 to £1,339, erasing falls during previous quarters.
Deposits protected for London properties during Q3 2021 rose by 17per cent compared with Q3 2020 and by more than 30per cent between April and September 2021 compared with the same period in 2020 – suggesting a return in demand for city living, and, potentially, rental growth, said the organisation.
|Region||Average Rent Q3 2021||Change since Q2 2021||Change since Q3 2020 £||Change since Q3 2020 per cent|
|South East||£949||£12||£49||5.44per cent|
|South West||£815||£18||£53||6.96per cent|
|E. Midlands||£642||£16||£43||7.18per cent|
|W. Midlands||£671||£26||£48||7.70per cent|
|North West||£635||£8||£29||4.79per cent|
|North East||£549||£19||£20||3.78per cent|
|N. Ireland||£567||£9||£31||5.78per cent|