Newly released figures from the The Deposit Protection Service Rent Index have shown that, during the second quarter of 2019, the UK experienced a sharp increase in average rent, rising from £757 to £771.
The 1.79% increase between April and June is the first significant uplift in rents since the average monthly UK rental price began to decline in the last quarter of 2017.
Daren King, Head of Tenancy Deposit Protection at The DPS, said: “The increase in rents during the second quarter of 2019 is striking, after a prolonged period of stagnation in the market.
Many commentators predicted that the tenancy fees ban would drive up rents as letting agents and landlords looked to alternative sources to cover costs but, with the ban coming in late in this quarter, it’s too early to say whether it is behind the hike. Given the economic factors that were behind the drop in rent prices remain relatively unchanged, it will be interesting to see if the upward trend increases between July and September.”
The DPS report also showed that average monthly rents increased by £7 (0.87%) from £764 year on year. London saw its first increase in average rent since the last quarter of 2017, from £1,288 in Q1 2019, to £1,319 in Q2 2019 (2.42%).
Outside of London, average monthly rent now stands at £673, an increase of £10 (1.5%) on last quarter, and a marginal increase of £2 (0.25%) compared with the same quarter last year.
While all property types experienced a rise in average rent across the UK, the largest increase was seen for terraced properties, rising from £699 to £731 (4.59%).
On average, the report found that UK renters are spending 32% of their wages on rent.