UK rents rise at fastest pace since 2007
Additionally, the largest increases in rent since the firm’s records began were all noted during the same period. This was marked by a 1.74% rise seen in Q2 2021, followed by a 1.96% jump in Q4, then a 1.8% uptick in Q1 of this year. The DPS said this was “significantly contributing” to the rate of rent inflation.
On an annual basis, the average rent in Q2 was a £66 jump or 8.21% higher when compared to the same period last year.
The North East recorded the largest annual rise in average rents, with a 10.75% or £57 hike to £710. This was followed by the West Midlands, which saw a 10.7% or £69 jump to £714.
Some eight of the 12 regions recorded by The DPS saw rents go up by at least 7%.
The smallest rise was recorded in Northern Ireland, where rents rose by 3.58% annually to £578. It was also the only region to report a quarterly fall in rental costs, with a £3 drop on Q1.
London saw the biggest yearly increase in rental costs by value, with a £124 or 9.44% rise to £1,438.
Based on property type, the average rent for a flat saw the largest rise at 2.55% annually to £885. This was followed by semi-detached houses, which recorded a 2.5% increase to £943, then detached houses which rose 2.25% to £1,184. Terraced houses recorded the lowest growth at 2.19% to £839.
Matt Trevett, managing director at The DPS, said: “The last 12 months of rent increases, including a significant acceleration during the last quarter, shows that the price of renting forms a substantial part in rising living costs across the country.
“A mixture of tenants moving back into cities, continued desire for larger rental properties with more space and a current shortage of properties of all types is causing rent prices to rise.
“Despite the current economic environment, many tenants still seem prepared to pay in order to secure a rental property.”