Average UK rents rose between July and September but failed to keep pace with inflation, according to the latest edition of The Deposit Protection Service (The DPS) Rent Index.
The stats show the average increased by £7 (0.91%) to £778: less than half the rise in inflation (1.90%) during the period – with some 32% of wages now spent on rent.
“Two consecutive quarterly increases have seen rents reach the highest value since the Rent Index launched in 2017 following a period of decline during 2018,” said DPS Managing Director Matt Trevett.
“However, average rents in the third quarter of 2019 did not keep up with inflation, as they did in Q2 2019 – this suggests rental values in the UK are regulating themselves against inflation,” he said.
Terraced and semi-detached properties in Q3 2019 experienced above-inflation (over 4%) average rent rises when compared with Q3 2018.
Rent increases for flats and detached properties were below inflation (1.36% and 0.80% respectively) during the same 12 months.
Most UK regions experienced an increase in average rents, with those outside London averaging £676: a marginal uplift of £3 (0.50%) on Q2 2019.
Yorkshire and The Humber saw the largest increase of £19 (3.60%) to £552 since the previous quarter.
The East Midlands and West Midlands experienced the only falls in England during Q3 2019: down £13 (-2.17%) to £578 and £1 (-0.19%) to £620, respectively.
The North East was the cheapest place in the UK to rent (£526) during Q3 2019 with a modest £3 (0.65%) increase during the period.
London is still the most expensive rental region in the UK, with the largest year-on-year growth of £43 (3.34%) and an average rent of £1,333.
Scotland and Wales are the only regions to experience year-on-year as well as quarter-on-quarter rent decreases, with Scotland’s rents falling by £6 (-1.02%) to £619 and Wales’ falling by £8 (-1.43%) to £578.