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Rental Index ReportApril 2018Powered by MIAC

Key Feature: Rental Change Across the UK

Area Spotlight: Kingston-Upon-Thames

Analysis: Rental Change by No. of Beds

Statistics: April 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

£1,232

£1,878

£734

£649

£571

0.64%

-0.27%

1.29%

1.66%

1.80%

Statistics: April 2018

Tenants pay an average of £1,878 for properties in London and £762 for properties in the rest of the UK

Tenants occupying properties in London are now spending an average of £1,454 on rent for 1-bedroom properties, £1,923 for 2-bedroom properties and £2,679 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of £601 on rent for 1-bedroom properties, £718 for 2-bedroom properties and £830 for 3-bedroom properties.

Since April 2017, average rents in the UK have risenby 0.70% to £1,201. In England, rents were up by 0.64%to £1,232/ month; in London, rents fell by -0.27% to £1,878. In Northern Ireland, rental prices rose by 1.80% to £571/ month. Meanwhile, in Scotland, rents rose slightly to £734/ month, following an average annual growth of 1.29%; in Wales, the average rent rose by 1.66% to £649.

Average Rent by No. of Beds

1 2 3 £1,454 £1,923 £2,679

Rental prices according to no. of beds

1 2 3 £601 £718 £830

Rental prices according to no. of beds

London Rest of UK

Average Rent in London vs Rest of UK

Rest of UK

London

£762

£1,878

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Key Feature: Rental Change Across the UK

Top UK Rent-Risers Revealed

The average rent for a property in England grew by 0.64% in the year to April, as falling rents in London (-0.27%) continued to weigh down on otherwise resilient rental growth in the rest of England (1.19%), according to the latest Landbay Rental Index, powered by MIAC.

The average rent paid for a property in England now stands at £1,232, or £762 if you exclude London. The lowest average rent is found in the North East (£552), where rents have shown very modest long-term growth over the past five years, increasing by just 1.8% during this time. Despite a year on year increase of 0.26%, rents in the North East have been falling since the start of 2018.

Hotspots for rental growth over the last 12 months include Leicester (3.02%), Nottingham (2.96%) and Northamptonshire (2.44%), with eight of the top ten ‘rental risers’ situated in either the East Midlands or East of England. The two regions, as well as the South West, continue to lead the way in terms of rental growth, with annual increases of 2.06%, 1.50%, and 1.54% respectively.

Six London boroughs feature in the UK’s bottom ten ‘rental fallers’ over the past year, including Kensington and Chelsea (-1.40%), Kingston-upon-Thames (-0.98%), Hammersmith and Fulham (-0.81%), Tower Hamlets (-0.79%), Barnet (-0.69%) and Harrow (-0.68%), and in total half of the London boroughs (17 out of 33) have seen rents fall year on year. Meanwhile, Bexley (1.37%), Havering (1.30%) and City of London (1.19%) have all seen rents rise by more than 1%, with just six boroughs exhibiting growth ahead of the 0.64% average in England.

John Goodall, CEO and founder of Landbay said: “Falling rents in some parts of the country, especially expensive prime London locations, distort the picture for the rest of England where rents are continuing to grow at a steady pace. Wherever they’re based, landlords have had to face a significant amount of complex legislation in recent years, most of which has cost them a lot of money, so it wouldn’t be surprising if they were to dramatically hike rents later in the year to recoup their losses.

“Partnered with the fact that rental demand shows no signs of giving up, prices will continue to rise over the coming years unless the government takes action. Without a radical house building plan for both first-time buyers and purpose-built rental properties, there is no way supply will ever be able to catch up with demand.”

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East England £709

East England £762

South West £821

East Midlands £663

East England £948

Norfolk 2.06%

East England £734Su�olk 2.15%

Southend-On-Sea

Bournemouth 2.04%

Nottingham 2.96%

Cambridgeshire 2.21%

East England £639Peterborough 2.24%

East Midlands £647Leicester 3.02%

NorthamptonshireEast Midlands £732

South West £976

2.44%

Bath and North East Somerset 2.35%

2.06%

London £1,481

-1.15%

-1.07%

-1.40%

Barnet -0.69%

-0.98%

London £1,884Hammersmith & Fulham

London £1,272Kingston-upon-Thames

South East £1,252Windsor & Maidenhead

East England £768Luton

North East £404Hartlepool

London £3,024Kensington & Chelsea

-0.81%

London £1,317Harrow -0.68%

WokinghamSouth East £1,031

London £1,725

-0.78%

Tower Hamlets -0.79%

-1.19%

Analysis: Rental Change Across the UK

Areas with the Highest Rental Growth in England

Areas with the Lowest Rental Growth in England

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Average rent (£)

Average rent (£)

Average % growth (Year on Year)

Average % growth (Year on Year)

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Analysis: Rental Change by No. of Beds

Regional Rental Growth Across England

£619 month / 3.53%

East Midlands / Rutland

South-East / Medway

East Midlands / Leicester

£811 month / 3.23%

£647 month / 2.81%

1 Bed

£663 month / 3.04%

East Midlands / Nottingham

East England / Cambridgeshire

East Midlands / Northamptonshire

£948 month / 2.72%

£732 month / 2.56%

2 Bed

£647 month / 4.63%

East Midlands / Leicester

East Midlands / Nottingham

East England / Peterborough

£663 month / 3.40%

£639 month / 2.99%

3 Bed

average growthyear on year

average growthyear on year

average growthyear on year

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average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

Areas with the Highest Rental Growth Across England

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Analysis: Rental Change by No. of Beds

Regional Rental Growth Across England

£639 month / -2.02%

East England / Luton

Kensington & Chelsea / London

Kingston-upon-Thames / London

£2,122 month / -1.92%

£1,055 month / -1.55%

1 Bed

£382 month / -2.29%

North East / Hartlepool

London / Kensington & Chelsea

South East / Wokingham

£3,210 month /-1.40%

£997 month / -1.27%

2 Bed

£4,232 month / -2.62%

London / Westminster

London / City of London

London / Hammersmith & Fulham

£3,819 month / -2.59%

£2,755 month / -2.40%

3 Bed

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

average growthyear on year

Areas with the Lowest Rental Growth Across England

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Area Spotlight: Kingston-upon-Thames

Rental Slump in South London

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As Kensington & Chelsea assumes its regular spot at the bottom of the rental growth tables (-1.40% year on year), this month sees the steady welcome of another London borough to the lowest rental growth rankings. Rents in the southern borough of Kingston-upon-Thames have tumbled into 5th place in a list of the areas with the lowest rental growth in England. Falling by -0.98% year on year, growth in Kingston is only better than Luton, Hartlepool and Kensington & Chelsea in England.

At £1,272, average rental prices are some of the most competitive in London. However, with even cheaper property prices and better transport connections, respectively, the neighbouring boroughs of Sutton and Merton are still beating Kingston in the rental popularity race.

By beds, tenants can expect to pay an average of £1,055/ month for 1-bedroom properties in Kingston, £1,360 for 2-bedroom properties and £1,726 for 3-bedroom properties.

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Region AreaAverage %

change (YoY)Rental pricesby beds (£)

Rental Breakdown: Average Rents Across England

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

0.00%

0.41%

0.77%

2.35%

0.88%

2.44%

1.61%

1.38%

-1.40%

£1,442

£598

£706

£976

£1,152

£732

£824

£766

£3,024

£910

£460

£491

£817

£845

£549

£631

£649

£2,122

£1,204

£546

£649

£999

£1,119

£690

£786

£788

£3,210

£1,549

£650

£752

£1,192

£1,443

£810

£860

£912

£5,459

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 (£)

Rental Breakdown: Average Rents Across England

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

1.35%

-1.19%

1.38%

1.82%

2.24%

1.86%

1.60%

0.50%

1.37%

£576

£404

£428

£579

£639

£547

£470

£436

£1,013

£507

£352

£342

£492

£512

£413

£400

£358

£834

£597

£382

£422

£628

£666

£562

£445

£434

£1.075

£834

£453

£497

£775

£726

£633

£552

£514

£1,307

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