High Tenant Demand

Posted on Tuesday, 26 April, 2022

Average UK rents have increased for the sixth consecutive quarter, according to The Deposit Protection Service, whilst also producing evidence that some tenants are paying above the going rate to secure a property

The UK’s largest protector of deposits, which safeguards 1.8m rent securities, says that average rents now stand at £849 a month: a £15 (1.80%) increase on £834 in Q4 2021, and a £49 (6.13%) increase on £800 in Q1 2021.

According to the organisation’s quarterly Rent Index, London rents have risen the most in value, increasing £34 (2.46%) on Q4 2021 and £90 (6.79%) since Q1 2021. The report also describes how flats saw the largest quarterly rise in rents during Q1 2022 — a first for the property category since the start of the coronavirus pandemic, with rents rising £16 (1.89%) to £863.

A survey by the organisation during Q1 2022 also highlights how 15% of tenants who responded paid more than advertised rents to secure their property.

Matt Trevett, Managing Director at The DPS, said: “Consistent quarterly rent rises – coupled with survey results that suggest that a proportion of tenants are overpaying to secure a property – underline the current intense demand for, and tight supply of, rental homes in the UK.

Source Property Reporter