Rent growth exceeds 2% for the second quarter in row, says The DPS
Average UK rents rose by more than two per cent for the second quarter in a row during Q3 2022, according to The Deposit Protection Service (The DPS).
The UK’s largest protector of deposits said that average rents in the country during Q3 2022 increased by 2.18 per cent (£19) to reach £889, an increase of 8.68% (£71) since Q3 2021.
The organisation also said that rents in London accelerated by 4.24 per cent (£61) to £1,499 during Q3 2022 and that average rents in the capital increased by 11.95% (£160) between Q3 2021 and Q3 2022. The UK’s current annual inflation rate is 10.1%.
Matt Trevett, Managing Director at The DPS, said: “Rent increases continued across the UK during Q3 2022 as a result of well-documented shortages in rental stock and general increases in the cost of living.
“Ongoing demand for larger properties in London, as well as flats during the past 12 months is driving the significant rent increases we’re seeing in the capital.
“In order to secure a property, tenants are still willing to pay historically high rents.”
Paul Fryers, Managing Director at Zephyr Homeloans, the specialist buy-to-let mortgage provider also part of the Computershare group, said: “Increases in the cost of living and property finance mean that landlords are facing higher maintenance, insurance and other costs.
“It’s more important than ever that brokers do all they can to source the right mortgage deal for their landlord customers.”
The DPS said that five regions – Yorkshire, the North West, and East Midlands, as well as Northern Ireland and the East of England – saw rent increases of more than two per cent during Q3 2022.
Rents in Scotland increased by £59 (8.91%) to £721 between Q3 2021 and Q3 2022, said The DPS.
The organisation added that rents in the North West increased by £57 (8.98%) to £692 during the same period.
Across the UK flats saw the greatest percentage rent increase between Q3 2021 and Q3 2022, up £79 (9.52%), from £830 to £909.
The organisation reported in July that average UK rents reached £870 during Q2 2022, an increase of 2.47% (£21) compared with Q1 2022.