Average rents rise more than 2% in Q3

Average UK rents increased by more than 2% for the second quarter in a row during Q3, according to data from The Deposit Protection Service (The DPS).

The UK’s largest protector of deposits revealed that average UK rents during Q3 increased by 2.18% to reach £889, an increase of £19.

This reflects an increase of 8.68% since Q3 2021, a climb worth £71.

According to The DPS, rents in London accelerated by 4.24%, an increase of £61 to £1,499 during Q3, and that average rents in the capital have increased by 11.95% since Q3 last year worth a rise of £160. The UK’s current annual inflation rate is 10.1%.

Across the UK, the figures also revealed that flats saw the greatest percentage rent increase between Q3 2021 and Q3 this year, up 9.52%, from £830 to £909.

The DPS managing director, Matt Trevett, commented: “Rent increases continued across the UK during Q3 2022 as a result of well-documented shortages in rental stock and general increases in the cost of living.

“Ongoing demand for larger properties in London, as well as flats during the past 12 months is driving the significant rent increases we’re seeing in the capital.

“In order to secure a property, tenants are still willing to pay historically high rents.”

Managing director at Zephyr Homeloans, specialist buy-to-let mortgage provider also part of the Computershare group, Paul Fryers, added: “Increases in the cost of living and property finance mean that landlords are facing higher maintenance, insurance and other costs.

“It’s more important than ever that brokers do all they can to source the right mortgage deal for their landlord customers.”

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