Detached homes see largest percentage rent increases
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 average rents for detached properties during Q3 2021 rose ÂŁ38 (3.52%) from ÂŁ1,079 to ÂŁ1,117, with rents on detached London properties rising ÂŁ93 (5.27%) from ÂŁ1,764 to ÂŁ1,857 and rents on detached West Midlands properties rising ÂŁ59 (6.38%) from ÂŁ925 to ÂŁ984.
By comparison, the DPS said that average UK rent increased by ÂŁ14 (1.74%) from ÂŁ804 to ÂŁ818 during Q3 2021.
The DPS’ quarterly Rent Index also highlighted that the number of deposits registered for detached properties fell 17% between Q3 2020 and Q3 2021 and that rents on detached homes grew by £91 (8.87%) 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.
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.”
The West Midlands experienced the highest rent increase during Q3 2021, growing 4.03% (ÂŁ26) to ÂŁ671, said the organisation.
The North East, still the cheapest region to rent a property, saw the second highest increase (3.58%) during Q3 2021, rising ÂŁ19 from ÂŁ530 to ÂŁ549.
Rents in the South West saw one of the largest annual increases of ÂŁ53 (6.96%), from ÂŁ762 to ÂŁ815, between Q3 2020 and Q3 2021.
Rents for all property types in the East of England rose 7.48% (ÂŁ61) to ÂŁ876 between Q3 2020 and Q3 2021, said the organisation, with average rents for detached homes rising ÂŁ67 (5.63%), from ÂŁ1,191 to ÂŁ1,258, during the period.
Wales, the only region where overall rents fell during Q3 2021, saw a decrease of ÂŁ5 (-0.80%) to ÂŁ621.
The DPS said London rents grew on average 1.90% (ÂŁ25) during Q3 2021 to ÂŁ1,339, erasing falls during previous quarters.
Deposits protected for London properties during Q3 2021 rose by 17% compared with Q3 2020 and by more than 30% 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.
