Rents Outside of London Growing at Record Rates

As rents rise to record levels, a lack of protection risks over £52bn for UK landlords 

·       Rents outside London are growing at the highest rate ever (+6.2%) 

·       Rents in London fall at the highest ever rate seen (-4.7%) 

·             As UK rent prices outside London reach record levels, the UK’s largest rent protection provider issues a stark warning to landlords.  

·             Uk’s National Rent Protection Scheme aims to protect over 1 million properties in 2021 

·             More detail and data can be found HERE 

The headlines from this month’s report are: 

·       The UK’s average rent is now £984, showing a 3% increase on last year (£955).  

·       Rents outside London are growing at the highest rate ever. When London is excluded, the UK’s average rent is £840, showing an increase of 6.2% on last year (£791). 

·       Ten of the twelve regions monitored by HomeLet showed a YOY increase in rental values between February 2020 and February 2021. The East Midlands saw the most significant growth at 8.1%. 

·       Rents in London continue to fall YOY, showing a 4.7% drop between February 2020 and February 2021 – the ninth decrease in annual variance in subsequent months. 

·       Rents in Northern Ireland are down 1% on last year – this is the fifth decrease in annual variance in subsequent months 

·       11 of the 21 London borough groupings monitored by HomeLet continue to show a YOY decrease in rental values against last year 

·       The average annual rental cost is now £11,808 per year for the 4.44m households who rent in the UK; this represents over £52bn per year in rental payments.  

·       HomeLet and Let Alliance protect over 100,000 UK properties through their National Rent Protection Scheme, which is only available to landlords through professional letting agents.   

·       As the UK economic looks uncertain for many, landlords are urged to consider rent protection  

Commenting on the data, Andy Halstead HomeLet and Let Alliance CEO said: “Those in the lettings sector warned of the Tenants Fees Act’s unintended consequences, along with the impact of the continued assault on landlords through policies that disincentives property investment. We’ve seen the volume of UK landlords dip, whilst supply from tenants has continued to grow. Landlords have to charge more to cover their essential costs, including professional letting agents’ valued services. Ultimately this pushes increased rents back on to tenants, the same group who supposedly should have benefited from legislation like the Tenants Fees Act.”    

“The situation with COVID is only making this trend much more pronounced. We have high demand areas where stock levels have remained flat or even declined because tenants want to rent for longer and fewer landlords are investing in property.  

Property owners are facing increased risks 

“Landlords face the genuine prospect that rent arrears will increase whilst the time to obtain vacant possession is climbing. As the UK’s National Rent Protection Scheme provider, we’ve seen an exceptional demand for our insurances that cover missed rental payments and legal costs.  

“We only provide cover through professional letting agents, with the economic outlook so uncertain for many tenants; I’d strongly urge any landlords to consider their insurance needs and contact their managing agent before it’s too late.” 

Commenting on the impact of Government policy on the sector, Andy continued: “With almost 1 in 5 people living in the private rented sector, it plays a critical role in the UK’s housing supply chain. Tenants should have the ability to rent a property at a reasonable price, whilst landlords and letting agents shouldn’t have to live in fear of future Government policy. The continual raft of legislation seemingly favouring tenants or only pushing homeownership to capture the popular vote needs to stop. The Government needs to listen to the lettings industry’s experience; landlords and letting agents want good tenants with a fair balance between all parties’ rights.” 

The Rental Index provides the most comprehensive and up-to-date data on rental values in the UK. 

The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK. 

Data tables follow below  

Table 1: Summary by Region for Average Agreed Rental Values in the UK  

Region	Feb-21	Jan-21	Feb-20	Monthly Var	Annual Var
East Midlands	£704	£698	£651	0.9%	8.1%
South West	£914	£919	£849	-0.5%	7.7%
East Of England	£978	£979	£916	-0.1%	6.8%
South East	£1,087	£1,094	£1,018	-0.6%	6.8%
West Midlands	£749	£741	£708	1.1%	5.8%
Yorkshire & Humberside	£680	£680	£645	0.0%	5.4%
North East	£542	£540	£517	0.4%	4.8%
North West	£782	£775	£755	0.9%	3.6%
Wales	£673	£675	£650	-0.3%	3.5%
Scotland	£678	£683	£672	-0.7%	0.9%
Northern Ireland	£662	£648	£669	2.2%	-1.0%
Greater London	£1,572	£1,563	£1,650	0.6%	-4.7%
UK	£984	£981	£955	0.3%	3.0%
UK excluding Greater London	£840	£839	£791	0.1%	6.2%

Page Break 

Table 2: Summary by London Borough for Average Agreed Rental Value 

Borough	Jan-21	Dec-20	Jan-20	Monthly Variation	Annual Variation
Croydon	£1,126	£1,092	£1,070	3.1%	5.2%
Enfield	£1,614	£1,595	£1,537	1.2%	5.0%
Redbridge and Waltham Forest	£1,304	£1,260	£1,269	3.5%	2.8%
Harrow and Hillingdon	£1,380	£1,392	£1,360	-0.9%	1.5%
Bromley	£1,417	£1,448	£1,399	-2.1%	1.3%
Hounslow and Richmond upon Thames	£1,525	£1,481	£1,518	3.0%	0.5%
Wandsworth	£1,815	£1,820	£1,806	-0.3%	0.5%
Bexley and Greenwich	£1,356	£1,380	£1,351	-1.7%	0.4%
Barnet	£1,562	£1,566	£1,556	-0.3%	0.4%
Westminster	£2,251	£2,273	£2,248	-1.0%	0.1%
Brent	£1,523	£1,563	£1,545	-2.6%	-1.4%
Hammersmith, Fulham, Kensington and Chelsea	£1,976	£1,906	£2,029	3.7%	-2.6%
Barking, Dagenham and Havering	£1,258	£1,288	£1,294	-2.3%	-2.8%
Merton, Kingston upon Thames and Sutton	£1,338	£1,334	£1,378	0.3%	-2.9%
Ealing	£1,421	£1,497	£1,481	-5.1%	-4.1%
Lambeth	£2,065	£1,999	£2,208	3.3%	-6.5%
Hackney and Newham	£1,448	£1,424	£1,564	1.7%	-7.4%
Lewisham and Southwark	£1,549	£1,555	£1,737	-0.4%	-10.8%
Haringey and Islington	£1,556	£1,534	£1,786	1.4%	-12.9%
Camden, City of London	£1,775	£1,795	£2,167	-1.1%	-18.1%
Tower Hamlets	£1,506	£1,513	£1,877	-0.5%	-19.8%

Graph 1: Annual Variance in UK Rent  

Graph 2: Annual Variance in UK Rent (Excluding Greater London)  

Graph 3: Annual Variance in Greater London Rent