Average UK rents have increased for the sixth consecutive quarter, figures from the Deposit Protection Service (DPS) have indicated.

The UK’s largest protector of deposits, which safeguards 1.8 million rent securities, revealed that average rents now stand at £849 a month.

This figure is a £15 increase (1.8%) on £834 in Q4 2021, and a £49 increase (6.1%) on £800 in Q1 2021.

According to the organisation’s quarterly Rent Index, London rents have risen the most in value, increasing by £34 (2.5%) on Q4 2021, and by £90 (6.8%) since Q1 2021. Between Q1 2021 and Q1 this year, all regions in the UK have registered an increase in average rents, with 10 out of 12 experiencing increases of more than 4%.

The largest percentage increase during the past 12 months took place in the West Midlands, where rents climbed by £49 (7.6%).

Managing director at the DPS, Matt Trevett, said: “Consistent quarterly rent rises – coupled with survey results that suggest that a proportion of tenants are overpaying to secure a property – underline the current intense demand for, and tight supply of, rental homes in the UK.

“Rents in London are also rebounding strongly, with average rents for flats in the capital increasing by £111 or just under nine per cent during the past twelve months – more than three times the falls seen during 2020, when tenants perhaps sought out more spacious homes outside of the Capital.

“Accelerating rents for flats could signal the beginning of the end of the pandemic trend of renters leaving cities.”

Commenting on the DPS findings, Zephyr Homeloans managing director, Paul Fryers, added: “The squeeze on rental stock is also impacting landlords, who are increasingly looking further afield to secure a suitable rental property.

“Recently we’ve seen landlords looking to northern cities such as Manchester and Liverpool, which are the subject of recent government investment and where more landlords believe they may find healthier yields.”

Share Story: