In their Q3 Rent Index Report, our friends at The Deposit Protection Service (The DPS) – also a part of the Computershare group – reported on the latest trends in the sector based on their huge pool of landlord data. As Zephyr is a specialist buy to let lender, this insight is of great interest to us, and it also makes useful reading for brokers and their landlord clients. So, here are some highlights from the report.
Not surprisingly, given the UK’s rising cost of living, there has been no let-up in UK rents rises. At the end of Q2 we brought you the news that there had been the biggest quarterly increase on record at 2.47%, and Q3 isn’t far off that with a 2.18% increase, making average rents £889. This is an increase of 8.68% since Q3 2021.
When it comes to looking at regional data, rents in London stand out as they accelerated by 4.24% (£61) to £1,499 during Q3 2022. Average rents in the capital increased by 11.95% (£160) between Q3 2021 and Q3 2022.
Yorkshire, North West, East Midlands, Northern Ireland, and East of England also saw rent increases of more than 2% during Q3 2022.
Across the UK, flats saw the greatest percentage rent increase between Q3 2021 and Q3 2022, up £79 (9.52%), from £830 to £909.
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, 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.”