Rents in the city of Southampton fell by more than 15% during the final quarter of 2021, according to the rental index by The Deposit Protection Scheme (DPS).
In real terms, that’s a drop of £122 to £685 pcm from £807. Conversely, York saw one of the highest quarterly rent increases of £71 (9.5%) and a whopping 17.2% (£120) annual rise compared to the same quarter in 2020.
Across the rest of the UK, it’s a largely positive picture, with the rental index revealing that values have increased for the fifth consecutive quarter in most areas, and for the second consecutive quarter in London.
At the end of 2021, rents in the capital were £1,381, representing the highest regional increase last quarter at 3.1%, but just 4.9% higher than 2020 figures, putting it in the bottom half of the league table.
The average rent now stands at £834, an increase of almost 2% on the previous quarter and a £42 or 5.3% increase on Q3 2020.
Quarterly rental index
|Region||Average Rent Q4 2021||Change since Q3 2021||Change since Q4 2020 £||Change since Q4 2020 %|
In terms of property types, it appears detached properties are in high demand with rents increasing the most; on average by £26 (2.3%) to £1,143, and also rising £88 or 8.3% from Q3 2020, the rental index reveals.
Flats experienced the smallest annual increase, but remain more expensive to rent than terraced properties – £803 pcm compared to £759.
Matt Trevett, Managing Director at The DPS, said: “During Q4 2021 rents increased in the vast majority of UK regions and across all property types, with demand for detached properties driving the greatest increase in rental value for these properties.
“We’re also seeing definitive signs of recovery in London, particularly the return of the popularity of flats in some areas, suggesting that some tenants are coming back to the capital.”
|Property Type||Q4 2021||Q3 2021||Q4 2021 vs Q3 2021 %||Q4 2020 (£)||2021 Q4 vs 2020 Q4 %|
These rent increases are another indication that rental stock is being squeezed, with the Computershare group reporting that some tenants are willing to pay upfront rents or above market value to secure a property.
Paul Fryers, Managing Director of Zephyr Homeloans, a specialist buy-to-let mortgage provider also part of the Computershare group, added: ”There is currently significant pressure on rental stock across the country.
“Reasons are complex, but they include landlords selling up to capitalise on high sale prices, plus a shortage of new build homes as a result of supply chain and raw materials issues.
“We’re hearing stories of landlords receiving unprecedented levels of interest, with some renters willing to pay rents upfront and even stories of some tenants willing to pay over the odds to secure properties.”