rental index...rental index september 2020 homelet rental index provides comprehensive and up to...

R E N TA L I N D E XS E P T E M B E R 2 0 2 0

HomeLet Rental Index provides comprehensive and up to date data on new tenancies in the UK. Data is gathered from our tenant referencing service, including the rental amounts agreed, the number of tenants moving into the property together with the

employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector.

However, average rental value in London (£1,646) was still 98.8% higher than the rest of the UK excluding London (£828).

Key headlines

Average rents in London are down YOY, showing a 2.8% fall between September 2019 and September 2020, the fourth decrease in annual variance in subsequent months.

The average rent in the UK is now £987, up 0.2% on last month, and 2.1% on last year.

When London is excluded, the average rent in the UK is now £828, this is up 0.4% on last month, and 3.9% on last year.

Ten of the twelve regions monitored showed an increase in rental values between September 2019 and September 2020, with the South West seeing an increase of more than 6%.

The South West shows a the highest yearly increase of 6.6% between September 2019 and September 2020.

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

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AV E R A G E R E N TA L VA L U E S A N N U A L VA R I A N C E I N R E N TA L VA L U E S

2.1

Average rental values in the UK

J F M A M J J A S O N D

£987

2020

2019

2020

2019

When London is excluded the average rent in the UK is now £828, this is up by 3.9% on last year

J F M A M J J A S O N D

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

2

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-1.5%

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M O N T H L Y VA R I A N C E I N AV E R A G E R E N T I N T H E U K

0.2

2020

2019

2018

Sept

‘18

Nov

‘18

Jan

‘18

Mar

‘18

May

‘18

Jul

‘19

Sept

‘19

Nov

‘19

Jan

‘19

Mar

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May

‘19

Jul

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Sept

‘20

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

3

UK regional breakdown

1.1

R E G I O NS E P T ‘ 2 0

A U G ‘ 2 0

S E P T ‘ 1 9

M O N T H L Y VA R .

A N N U A L VA R .

South West £902 £899 £846 0.3% 6.6%

North East £558 £546 £535 2.2% 4.3%

East Of England £967 £954 £927 1.4% 4.3%

North West £770 £781 £739 -1.4% 4.2%

West Midlands £747 £739 £718 1.1% 4.0%

East Midlands £678 £670 £653 1.2% 3.8%

South East £1,074 £1,070 £1,045 0.4% 2.8%

Wales £650 £641 £634 1.4% 2.5%

Yorkshire & Humberside £673 £678 £657 -0.7% 2.4%

Scotland £683 £692 £676 -1.3% 1.0%

Northern Ireland £657 £668 £673 -1.6% -2.4%

Greater London £1,646 £1,653 £1,694 -0.4% -2.8%

UK £987 £985 £967 0.2% 2.1%

UK exc. Greater London £828 £825 £797 0.4% 3.9%

2 to 10

0.9 to <2

0

-0.9 to -5

Annual variance in average rent

0.4

-0.7

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Household rent to income ratio in the UK

UK

North East

Greater London

Sept

‘18

Nov

‘18

Jan

‘18

Mar

‘18

May

‘18

Jul

‘19

Sept

‘19

Nov

‘19

Jan

‘19

Mar

‘19

May

‘19

Jul

‘20

Sept

‘20

30.6

35.3

23.5

30.4

35.1

22.6

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

5

R E G I O N S E P T ‘ 1 9 S E P T ‘ 2 0VA R I A N C E ( P O I N T S )

UK 30.9 % 30.4 % 0.5%

UK Ex London 29.3 % 29.1 % 0.2%

North East 24.6 % 22.6 % 2.0%

North West 28.4 % 29.0 % -0.6%

Yorkshire and Humberside 26.0 % 25.3 % 0.7%

East Midlands 28.8 % 28.2 % 0.6%

Wales 27.7 % 28.9 % -1.2%

South West 32.2 % 32.0 % 0.2%

South East 31.6 % 31.0 % 0.6%

London 36.3 % 35.1 % 1.2%

East Of England 30.2 % 30.8 % -0.6%

West Midlands 29.3 % 29.3 % 0.0%

Scotland 26.9 % 25.0 % 1.9%

Northern Ireland 27.3 % 25.6 % 1.7%

Household rent to income ratio by region

0.7

1.9

The data displayed below looks at the average gross household income per property against the average total rental value per property.

0.2

H O M E L E T R E N T A L I N D E X A U G U S T 2 0 2 0

6

Annual variance in average rental values by region

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S C O T L A N D N O R T H E A S T

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Y O R K S H I R E A N D T H E H U M B E R N O R T H W E S T

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E A S T M I D L A N D S E A S T O F E N G L A N D

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G R E A T E R L O N D O N W A L E S

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W E S T M I D L A N D S N O R T H E R N I R E L A N D

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

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Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

1.0

4.3

4.2

2.4

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

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Feb ‘20

Mar ‘20

Apr ‘19

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Jun ‘20

Jul ‘20

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H O M E L E T R E N T A L I N D E X A U G U S T 2 0 2 0

7

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Y O R K S H I R E A N D T H E H U M B E R N O R T H W E S T

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E A S T M I D L A N D S E A S T O F E N G L A N D

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G R E A T E R L O N D O N W A L E S

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W E S T M I D L A N D S N O R T H E R N I R E L A N D

3.8

-2.8

4.3

2.5

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

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Feb ‘20

Mar ‘20

Apr ‘19

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Sept ‘20

H O M E L E T R E N T A L I N D E X A U G U S T 2 0 2 0

8

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W E S T M I D L A N D S N O R T H E R N I R E L A N D

2.8

4.0

6.6

-2.4

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

Sept ‘19

Oct ‘19

Nov ‘19

Dec ‘19

Jan ‘20

Feb ‘20

Mar ‘20

Apr ‘19

May ‘20

Jun ‘20

Jul ‘20

Aug ‘20

Sept ‘20

H O M E L E T R E N T A L I N D E X A U G U S T 2 0 2 0

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M O N T H L Y VA R I A T I O N B E T W E E N G R E A T E R L O N D O N R E N TA L P R I C E S A N D T H E U K AV E R A G E

Greater London vs. the UK

Sept

‘18

Nov

‘18

Jan

‘18

Mar

‘18

May

‘18

Jul

‘18

Sept

‘19

Nov

‘18

Jan

‘18

Mar

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‘18

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‘20

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

1 0

R E G I O NS E P T ‘ 2 0

A U G ‘ 2 0

S E P T ‘ 1 9

M O N T H L Y VA R .

A N N U A L VA R .

1 Barking, Dagenham and Havering

£1,280 £1,307 £1,244 -2.1% 2.9%

2 Barnet £1,525 £1,562 £1,591 -2.4% -4.1%

3 Bexley and Greenwich £1,379 £1,409 £1,369 -2.1% 0.7%

4 Brent £1,523 £1,578 £1,646 -3.5% -7.5%

5 Bromley £1,479 £1,489 £1,437 -0.7% 2.9%

6 Camden, City of London £2,058 £2,043 £2,199 0.7% -6.4%

7 Hammersmith, Fulham, Kensington and Chelsea

£2,054 £2,009 £2,096 2.2% -2.0%

8 Croydon £1,124 £1,115 £1,095 0.8% 2.6%

9 Ealing £1,473 £1,485 £1,466 -0.8% 0.5%

10 Enfield £1,571 £1,510 £1,518 4.0% 3.5%

11 Hackney and Newham £1,532 £1,538 £1,641 -0.4% -6.6%

12 Haringey and Islington £1,768 £1,782 £1,848 -0.8% -4.3%

13 Harrow and Hillingdon £1,339 £1,369 £1,370 -2.2% -2.3%

14 Hounslow and Richmond upon Thames

£1,486 £1,511 £1,464 -1.7% 1.5%

15 Merton, Kingston upon Thames and Sutton

£1,375 £1,362 £1,469 1.0% -6.4%

16 Lambeth £2,185 £2,177 £2,189 0.4% -0.2%

17 Lewisham and Southwark £1,752 £1,746 £1,759 0.3% -0.4%

18 Redbridge and  Waltham Forest

£1,297 £1,297 £1,274 0.0% 1.8%

19 Tower Hamlets £1,757 £1,755 £1,964 0.1% -10.5%

20 Wandsworth £1,819 £1,840 £1,901 -1.1% -4.3%

21 Westminster £2,388 £2,305 £2,497 3.6% -4.4%

Greater London by borough

10

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18

131

12

4

11

6

9 1921

7

31716

14 20

5

15

8

2 to 10

0.9 to <2

0

-0.9 to -12

Annual variance in average rent

This section looks at the average rental values for new tenancies for the boroughs of London.

The annual variance compares September 2019 with September 2020.

H O M E L E T R E N T A L I N D E X A U G U S T 2 0 2 0

1 1

L O N D O N B O R O U G H S W I T H T H E H I G H E S T AV E R A G E R E N T I N S E P T ‘ 2 0

L O N D O N B O R O U G H AV G . R E N T S E P T ‘ 2 0

Westminster £2,388

Lambeth £2,185

Camden, City of London £2,058

Hammersmith, Fulham, Kensington and Chelsea £2,054

Wandsworth £1,819

L O N D O N B O R O U G H S W I T H T H E H I G H E S T A N N U A L VA R I A N C E I N AV E R A G E R E N T

L O N D O N B O R O U G H A N N U A L VA R I A N C E

Bromley 2.9%

Barking, Dagenham and Havering 2.9%

Enfield 2.7%

Croydon 2.6%

Redbridge and Waltham Forest 1.8%

L O N D O N B O R O U G H S W I T H T H E L O W E S T AV E R A G E R E N T I N S E P T ‘ 2 0

L O N D O N B O R O U G H AV G . R E N T S E P T ‘ 2 0

Croydon £1,124

Barking, Dagenham and Havering £1,280

Redbridge and Waltham Forest £1,297

Harrow and Hillingdon £1,339

Merton, Kingston upon Thames and Sutton £1,375

L O N D O N B O R O U G H S W I T H T H E L O W E S T A N N U A L VA R I A N C E I N AV E R A G E R E N T

L O N D O N B O R O U G H A N N U A L VA R I A N C E

Tower Hamlets -10.5%

Brent -7.5%

Hackney and Newham -6.6%

Merton, Kingston upon Thames and Sutton -6.4%

Camden, City of London -6.4%

Greater London ranked by borough

H O M E L E T R E N T A L I N D E X S E P T E M B E R 2 0 2 0

1 2

For information regarding the HomeLet Rental Index please email rentalindex@homelet.co.ukFor media enquiries relating to the HomeLet Rental Index please email mediaenquiries@homelet.co.uk

A B O U T H O M E L E T

With over 25 years’ experience supporting the industry, HomeLet is one of the leading sources of support for the UK’s vibrant private rented sector. Part of the Barbon Insurance Group, we’re based in Lincoln, with more than 300 members of staff working hard every day to support letting agents, landlords and tenants.

A B O U T T H E H O M E L E T R E N T A L I N D E X

The index and average prices are produced using HomeLet’s mix adjusted rental index methodology. This helps to track the representative rental values over time, which factor in changes in the mix of property types and locations of rented properties. Data is gathered from our tenant referencing service, and our rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs. The data used in the HomeLet Rental Index is aggregated to regional, county and city level only. This ensures that all property or individual records remain strictly anonymous.

The HomeLet Rental Index is prepared from information that we consider is collated with careful attention, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue this report. The HomeLet Rental Index may not be used for commercial purposes; we shall not be liable for any decisions made or action taken in reliance upon the published data.

For more information on the HomeLet Rental Index please visit homelet.co.uk/homelet-rental-index