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Rental Index ReportJanuary 2018Powered by MIAC

Key Feature: UK Rents Return to Growth

Area Spotlight: Brighton & Hove

Analysis: Rental Growth Across England

Statistics: January 2018

Rental Breakdown: Average Rents Across England

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Average Rental Price Rise Across the UK - Year on Year

England

London

Scotland

Wales

Northern Ireland

£1,230

£1,876

£731

£645

£565

0.60%

-0.54%

1.26%

1.45%

0.99%

Statistics: January 2018

Rest of UK

London

Tenants occupying properties in London are now spending an average of £1,876 on rent, whilst tenants outside the capital are paying £760 on average.

Tenants occupying properties in London are now spending an average of £1,453 on rent for 1-bedroom properties, £1,921 for 2-bedroom properties and £2,672 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of £600 on rent for 1-bedroom properties, £716 for 2-bedroom properties and £828 for 3-bedroom properties.

Since January 2017, average rents in the UK have risenby 0.66% to £1,198. In England, rents were up by 0.60%to £1,230/ month; in London, rents fell by -0.54% to £1,876. In Northern Ireland, rental prices rose by 0.99% to £565/ month. Meanwhile, in Scotland, rents rose slightly to £731/ month, following an average annual growth of 1.26%; in Wales, the average rent rose by 1.45% to £645.

Average Rent in London vs Rest of UK

Average Rent by No. of Beds

£760

£1,876

1 2 3 £1,453 £1,921 £2,672

Rental prices according to no. of beds

1 2 3 £600 £716 £828

Rental prices according to no. of beds

London Rest of UK

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Key Feature: UK Rents Return to Growth

Rents Return to Growth Across London and Rest of UK

Following an uncertain period of fluctuating growth, rents nationwide experienced the first rise across every UK region in January, for the first time in almost two years. At 0.18% growth, month on month (MoM), the East Midlands saw the greatest growth in the UK, followed by the East of England, at 0.13%. Even London, after 19 months in negative territory, experienced an average rent-rise of 0.03%, with the greatest change occurring in properties based in Bexley (0.18% MoM).

Following several market and government legislation changes, including stamp duty and the new PRA guidelines, which have increased landlord costs, the pressure on rental prices has been strong. And according to predictions, January’s widespread rise is only the beginning of a drive in rental growth.

The average UK rent now stands at a record £1,198 per month, a 0.66% increase on this time last year. In comparison, rents in the capital (£1,876) remain around 2.5 times the rest of the UK (£760) - this is still £16 a month shy of the £1,893 record set in May 2016.

While every region saw rising rents in January, the speed of rental growth has not been consistent across the UK. At a country level, Wales (0.10%) incurred the most rental growth, while Northern Ireland (0.01%) fell behind with a figure ten times less. Meanwhile, from a regional perspective, the East Midlands experienced rental growth of 0.18% in January alone, followed by the East of England (0.13%). Rents in the North East paralleled the 0.03% growth seen in London.

John Goodall, CEO and founder of Landbay said: “With all the tax and regulatory changes landlords have shouldered over the past couple of years, an uplift in rents has been on the cards for a while, and is likely to continue into 2018. Stamp duty changes pushed up transaction costs for landlords back in 2016, as have a raft of new regulations from the PRA landing in 2017. Furthermore, the Bank of England’s Term Funding Scheme comes to an end this month, pulling away one of the crutches that has allowed many mainstream lenders to keep mortgage rates so low. This, together with gradually rising interest rates, will eventually push up borrowing costs for banks, and consequently for landlords, who will have to pass some of these costs onto tenants in the form of higher rents.

“Landlords who turned their backs on London when rents started to dwindle may now want to reconsider. House prices have declined in the capital for four consecutive months and, combined with positive rental growth of 0.03% in January, yields will now be climbing.”

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London

Wales0.10%

England(minus London)

NorthernIreland

0.09%

0.01%

0.03%

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Region

East Midlands 625 2.30 0.18

Year on

Year (YoY)

Month on

month (MoM)

Average rent (£) Percentage change (%)

East England 909 1.67 0.13

South West 747 1.62 0.08

West Midlands 685 1.61 0.11

North West 619 1.14 0.06

Yorkshire &Humber 576 1.39 0.10

South East 1,051 0.71 0.08

North East 553 0.65 0.03

London 1,876 -0.54 0.03


Regional Rental Growth in England - January 2018

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Least expensive rents in England (outside London) byno. of beds

£915 / month

Windsor & Maidenhead / South-East

2 BedBrighton & Hove / South-East


£1,232 / month

£1,579 / month

1 Bed

£347 / month

Blackburn with Darwen / North-West

2 BedHartlepool / North-East


£387 / month

£456 / month

1 Bed

£915 / month

Windsor & Maidenhead / South-East



£1,232 / month

£1,579 / month

1 Bed

£347 / month

Blackburn with Darwen / North-West



£387 / month

£456 / month

1 Bed

Most expensive rents in England (outside London) by no. of beds

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Analysis: Rental Statistics Across England (minus London)

The Brighter Side of the South-East As the Royal Borough of Windsor & Maidenhead continues its descent into negative growth to take bottom spot as the area with the smallest yearly percentage growth (-1.59%), Brighton & Hove is growing in popularity to swing the South-East back in tenant favour.

While average rents are already being pushed up nationwide, as a consequence of changes in market and government legislation, at 2.0% the rent rise in Brighton Hove is more than twice the regional average (0.71%). In fact, the area has grown by a minimum of 2%, year on year, since October 2013. Reasons for this include the bustling suburban life and youthful population of 16-44 years, who make up 42% of the total demographic, which could be doing well to draw the millennial rental generation.

Out of all the areas in the South-East, Brighton & Hove is the fifth most expensive area to rent, with average prices exceeding the regional average of £1,051, at £1,093/ month. For properties of 1 bedroom, average costs are £877/ month and for 2-bedroom properties rents are £1,232, while tenants should expect to pay an average of around £1,579 for 3 homes with 3 bedrooms.

East-Midlands

North-East

South-East

Year on YearYoY =

Leicester / 3.70%Greatest average YoY percentageincrease

Windsor & Maidenhead / -1.59%Smallest average YoY percentageincrease

Surrey / £1,434Highest average rent

Hartlepool / £407Lowest average rent

Area Spotlight: Brighton & Hove

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Region AreaAverage %

change (YoY)Rental pricesby beds (£)


Average Rentalprice (£)

Surrey

Tyne & Wear

Cheshire

Bath and North

Hertfordshire

Northamptonshire

Warwickshire

York

Kensington &Chelsea

East Somerset

1 x

1 x

1 x

1 x

1 x

1 x

1 x

1 x

1 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

-0.49%

0.97%

0.82%

2.50%

0.74%

2.75%

2.06%

1.10%

-1.36%

£1,434

£600

£704

£972

£1,147

£728

£825

£762

£3,037

£908

£464

£494

£820

£840

£544

£635

£652

£2,130

£1,193

£548

£648

£1,002

£1,113

£687

£788

£777

£3,217

£1,547

£652

£750

£1,193

£1,442

£805

£857

£920

£5,449

SouthEast

NorthEast

NorthWest

SouthWest

East of England

EastMidlands

WestMidlands

Yorkshire& Humber

London

Areas with the Highest Rents England, by County

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Region AreaAverage %

change (YoY)Rental pricesby beds (£)


Average Rentalprice (£)

Isle of Wight

Hartlepool

Blackburn

Torbay

Peterborough

Derby

Stoke on Trent

Kingston upon Hull

Bexley

1 x

1 x

1 x

1 x

1 x

1 x

1 x

1 x

1 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

2 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

1.29%

-0.45%

1.01%

1.59%

2.80%

1.97%

2.06%

0.62%

1.40%

£573

£407

£426

£575

£637

£546

£469

£436

£1,009

£510

£357

£347

£484

£512

£413

£394

£355

£826

£591

£387

£421

£626

£663

£557

£446

£433

£1.070

£826

£457

£490

£773

£722

£635

£552

£515

£1,306

SouthEast

NorthEast

NorthWest

SouthWest

East of England

East Midlands

WestMidlands

Yorkshire& Humber

London

Areas with the Lowest Rents in England, by County

with Darwen

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Rent Check is an online tool that allows tenants and landlords to validate movements in their own rents against others in their area in a fast and user-friendly way. The postcode search widget harnesses sophisticated UK wide data from Landbay’s monthly Rental Index, powered by MIAC. The index maps annual and monthly trends in advertised and actual rents, both geo-graphically and by bedroom number, providing unique and sensitive insight into market movements and social mobility. To validate your rent change by area and number of bedrooms, please visit rentcheck.landbay.co.uk

The Landbay Rental Index

The Landbay Rental Index includes unique granular level detail, looking at local trends to the county and London Borough level, including further segmentations by number of bedrooms.

The credibility of any index is highly dependent on the breadth and depth of underlying data used, which is why this rental index utilises data from Zoopla, the British property website. Approximately 100,000 properties are analysed each month to form the index.

The rental values are mix adjusted by property type, number of beds and geography to ensure that any change in the composition of the data over time does not skew the results. The changes in rents are calculated based on matched samples of homogenous or identical data points over time. MIAC employs sophisticated smoothing techniques and interpolation to filter ‘noise’ and optimise the signal from the data.

Landbay and MIAC do not make any declaration regarding the accuracy or completeness of the Rental Index; collectively reserving the right to adjust the methodology and to edit or withdraw any reports or data. Landbay and MIAC shall not be liable for any decisions made or action taken in response to the published data.

About Rent Check & the Landbay Rental Index

rental index report - amazon web services · social mobility. to validate your rent change by area...

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