Rents for detached homes increased twice as fast as the average for all UK properties during Q3 2021 says the Deposit Protection Service.
DPS claims average rents for detached properties during Q3 2021 rose £38 or 3.52 per cent, with rents on detached London properties rising £93 or 5.27 per cent.
By comparison, the organisation said that average UK rent increased by just £14 or 1.74 per cent in the same quarter.
The DPS’ quarterly index also highlights that the number of deposits registered for detached properties fell 17 per cent between Q3 2020 and Q3 2021 and that rents on detached homes grew by £91 or 8.87 per cent during the same period.
DPS managing director Matt Trevett says: “Despite the roll-out of the coronavirus vaccination programme and the lifting of lockdowns, it seems that tenants are still prioritising more living space and are willing to pay for it. They are also staying in detached homes for longer and this, combined with lower availability of these properties, is driving up rents.
“The last quarter’s rent increases across all property types and most regions suggests a strong return of demand from tenants as employees start to go back into offices and students attend University in person this academic year.”
The West Midlands experienced the highest rent increase during Q3 2021, growing 4.03 per cent or £26 to £671; the North East, still the cheapest region to rent a property, saw the second highest increase of 3.58 per cent or £19, to £549.
Rents in the South West saw one of the largest annual increases of £53 or 6.96 per cent, from £762 to £815, between Q3 2020 and Q3 2021. Wales, the only region where overall rents fell during Q3 2021, saw a decrease of £5 to £621.
Deposits protected for London properties during Q3 2021 rose by 17 per cent compared with Q3 2020 and by more than 30 per cent between April and September 2021 compared with the same period in 2020 – suggesting a return in demand for city living and, potentially, rental growth, says the organisation.