Rental Index Report - Amazon Web Services...City of London £2,219-0.08% Camden £3,042-0.11%...
Transcript of Rental Index Report - Amazon Web Services...City of London £2,219-0.08% Camden £3,042-0.11%...
1
Rental Index ReportAugust 2017Powered by MIAC
Key Feature: London – Student City, Graduate Magnet
Area Spotlight: West Midlands
Statistics: UK
Beyond London: Rental Price Breakdown Across England
2
2
Average Rental Price Rise Across the UK - Year on Year
Since July 2016, average rents in the UK have risen by0.67% to £1,194. In England, rents were up by 0.61% to £1,225/ month; in London, rents increased relatively by -0.94%. In Northern Ireland, rental prices rose by 0.38% to £561/ month. Meanwhile, in Scotland, rents increasedslightly to £728/ month, following an average annual growthof 1.41%; in Wales, the average rent rose by 1.42% to £640.
Statistics: August 2017
Northern Ireland
£5610.38%
Wales
£6401.42%
England
£1,2250.61%
Scotland
£7281.41%
London
£1,874-0.94%
Rest of UK
London
Tenants occupying properties in London are now spending an average of £1,874 on rent, whilst tenants outside the capital are paying £757 on average.
Tenants occupying properties in London are now spending an average of £1,445 on rent for 1-bedroom properties, £1,917 for 2-bedroom properties and £2,683 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of £597 on rent for 1-bedroom properties, £714 for 2-bedroom properties and £824 for 3-bedroom properties.
London vs Rest of UK
Average Rent in London vs Rest of UK
£757
£1,874
1 2 3 £1,445 £1,917 £2,683
Rental prices according to no. of beds
1 2 3 £597 £714 £824
Rental prices according to no. of beds
London Rest of UK
3
3
As summer draws to a close, thousands of students across the country will be packing their bags to begin degrees at university. And as well as juggling their course deadlines, many will be introduced to their first experience of managing financial responsibilities, including their rental accommodation.
Home to some of the top universities in the world, London remains an attractive centre for students, searching for the best of education and social life. However, rents here are also, unsurprisingly, some of the most expensive in the UK, forcing many to relinquish a sizeable chunk of their loan to living out.
At an average monthly cost of £2,219, the popular student borough of Camden is one of the costliest areas of London, following closely behind the City of Westminster. Other popular student hangouts include Hackney and Southwark, which ask for a respective average rent of £1,728 and £1,690.
As many students begin their degrees, so an equal number will be finishing and emerging as graduates, seeking fresh opportunities to launch a successful career. Again, the appeal of London, as a prime business centre, inspires many to move into the city and look for a rental home to call their own. And as new reports highlight that many renting graduates are spending upwards of 45% of their take-home pay on rent, affordability is key.
For many graduates, the outer boroughs can present them with exciting rental options at cheaper than average central London prices. At average rents of £1,004, £1,125 and £1,056 per month, the outer boroughs of Bexley, Havering and Sutton, respectively, are the cheapest places to live in the city. However, despite a yearly drop in growth, monthly rental prices are slowly on the up, increasing by an average of 0.09% since this time last month. It’s something to keep in mind for incoming graduate tenants, as they choose their London commuter base.
Key Feature: London – Student City, Graduate Magnet
London – Student City Remains a Grad Magnet, as Monthly Rents Hint at Increase
Camden
CamdenHackney
Havering
Sutton
Hackney
Havering
Sutton
£2,219
£1,728
£1,125
£1,056
4
£1,0040.05%Bexley
£1,169-0.11%Bromley
£1,0560.07%Sutton
£1,1250.11%Croydon
Top 7 Least Affordable Boroughs to Rent in London
Top 7 Most Affordable Boroughs to Rent in London
£1,7340.15%Tower Hamlets
£1,8860.00%Hammersmith & Fulham
£1,839-0.01%Islington
£2,891-0.02%Westminster
£2,0740.13%City of London
£2,219-0.08%Camden
£3,042-0.11%Kensington & Chelsea
£1,0040.05%Bexley
£1,0720.07%Havering
£1,0560.07%Sutton
£1,1920.02%Hillington
£1,1250.11%Croydon
£1,169-0.11%Bromley
£1,2030.08%Barking & Dagenham
4
Average percentage rental change is calculated according to average rental value in the previous month (July 2017).
Average percentage rental change is calculated according to average rental value in the previous month (July 2017).
5
Statistics: UK
£2,152
£1,610
£2,019
£880
£761
£749
£535
£599
£542
£526
£3,223
£2,269
£2,951
£1,066
£910
£969
£680
£845
£631
£664
£5,424
£3,313
£4,303
£1,280
£1,037
£1,101
£738
£995
£737
£656
1
1
1
1
1
1
1
1
1
1
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Average Rent: £3,042
Average Rent: £2,219
Average Rent: £2,891
Average Rent: £1,190
Average Rent: £936 Average Rent: £647
Average Rent: £905
Average Rent: £706
Average Rent: £759
Average Rent: £668
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
-2.36%
-2.38%
-1.13%
0.82%
2.34%
2.33%
2.36%
0.62%
2.25%
2.68%
Imperial College London -Kensington & Chelsea
University College London - Camden
King’s College London - Westminster
University of Oxford
University of Cambridge
University of Bristol
University of Birmingham
University of Southampton
University of Manchester
University of Nottingham
5
Average Rents in the Areas of the Top 10 UK Universities, By No. of Beds
Average percentage rental change is calculated according to average rental value in the previous year (August 2016).
6
6
Area Spotlight: West Midlands
St. Albans
Cheshunt
Hertfordshire
~15 minto St. Pancras
Average rentalprice£1,144
~35-40 minto Euston
The West Midlands is, both, the name of the region and individual county, the latter of which is home to the major cities of Coventry, Birmingham and Wolverhampton.
Out of all the counties in the West Midlands region, the West Midlands has incurred the most positive growth, considering quarterly and monthly values. While Stoke on Trent continues to lead the region in best Year on Year (YoY) average percentage change at 2.81%, the West Midlands is catching up fast with an average Month on Month (MoM) growth of 0.21% since July 2017. This is 0.08% more than the average monthly growth experienced by Stoke on Trent. Average rent in the West Midlands now sits at £815, the highest of all the counties in the West Midlands region and £134 more than the regional average.
Possible reasons for this growth, include the significant regeneration that is taking place across large cities, such as Birmingham and Coventry. For example, according to Birmingham council’s Big City Plan, an enormous development programme planned across 20 years, the council hopes to build over 5,000 new homes, 1.5 million sqm of new floorspace and over 50,000 new jobs, to name a few. This is undoubtedly expected to bring in more new tenants, as the West Midlands becomes an increasingly important and attractive regional centre of commerce.
West Midlands – One to Watch
7
Region AreaAverage %
change (YoY)Rental pricesby beds (£)
Beyond the London Commute:
Average Rentalprice (£)
Surrey
Bath & North
Kensington &
Tyne & Wear
Hertfordshire
York
Cheshire
Warwickshire
1 x
1 x
1 x
1 x
1 x
1 x
1 x
1 x
2 x
2 x
2 x
2 x
2 x
2 x
2 x
2 x
3 x
3 x
3 x
3 x
3 x
3 x
3 x
3 x
-0.11%
3.09%
0.05%
1.21%
0.54%
1.53%
1.83%
-0.38%
£1,440
£965
£594
£1,145
£754
£706
£815
£3,042
£911
£813
£463
£842
£651
£499
£626
£2,152
£1,197
£1,004
£545
£1,108
£775
£646
£782
£3,223
£1,556
£1,189
£645
£1,448
£905
£751
£854
£5,424
SouthEast
SouthWest
NorthEast
East ofEngland
Yorkshire& Humber
NorthWest
WestMidlands
London
East Somerset
Chelsea
Areas with the Highest Rents in England, by County
8
Region AreaAverage %
change (YoY)Rental pricesby beds (£)
Beyond the London Commute:
Average Rentalprice (£)
Isle of Wight
Torbay
Bexley
Hartlepool
Peterborough
Kingston upon Hull
Blackburn
with Darwen
Stoke on Trent
1 x
1 x
1 x
1 x
1 x
1 x
1 x
1 x
2 x
2 x
2 x
2 x
2 x
2 x
2 x
2 x
3 x
3 x
3 x
3 x
3 x
3 x
3 x
3 x
1.88%
1.53%
0.78%
3.84%
1.22%
-0.06%
2.81%
1.98%
£573
£572
£412
£633
£436
£421
£467
£1,004
£498
£483
£365
£511
£356
£343
£398
£827
£597
£624
£395
£661
£436
£414
£443
£1,066
£825
£767
£456
£710
£509
£489
£547
£1,295
SouthEast
SouthWest
NorthEast
East ofEngland
Yorkshire& Humber
NorthWest
WestMidlands
London
Areas with the Lowest Rents in England, by County
9
Rent Check is an online tool that allows tenants and landlords to validate movements in their own rents against others in their area in a fast and user-friendly way. The postcode search widget harnesses sophisticated UK wide data from Landbay’s monthly Rental Index, powered by MIAC. The index maps annual and monthly trends in advertised and actual rents, both geo-graphically and by bedroom number, providing unique and sensitive insight into market movements and social mobility. To validate your rent change by area and number of bedrooms, please visit rentcheck.landbay.co.uk
The Landbay Rental Index
The Landbay Rental Index includes unique granular level detail, looking at local trends to the county and London Borough level, including further segmentations by number of bedrooms.
The credibility of any index is highly dependent on the breadth and depth of underlying data used, which is why this rental index utilises data from Zoopla, the British property website. Approximately 100,000 properties are analysed each month to form the index.
The rental values are mix adjusted by property type, number of beds and geography to ensure that any change in the composition of the data over time does not skew the results. The changes in rents are calculated based on matched samples of homogenous or identical data points over time. MIAC employs sophisticated smoothing techniques and interpolation to filter ‘noise’ and optimise the signal from the data.
Landbay and MIAC do not make any declaration regarding the accuracy or completeness of the Rental Index; collectively reserving the right to adjust the methodology and to edit or withdraw any reports or data. Landbay and MIAC shall not be liable for any decisions made or action taken in response to the published data.
About Rent Check & the Landbay Rental Index