Rental Index Report. April Powered by MIAC. Statistics: April Key Feature: Rental Change Across the UK

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1 Rental Index Report April 2018 Powered by MIAC Statistics: April 2018 Key Feature: Rental Change Across the UK Analysis: Rental Change by No. of Beds Area Spotlight: Kingston-Upon-Thames Rental Breakdown: Average Rents Across England 1

2 Statistics: April 2018 Average Rent in London vs Rest of UK Average Rental Price Rise Across the UK - Year on Year England 1, % 1,878 London 762 Rest of UK Tenants pay an average of 1,878 for properties in London and 762 for properties in the rest of the UK Average Rent by No. of Beds London 1, % Scotland % ,454 1,923 2,679 Rental prices according to no. of beds Rental prices according to no. of beds London Rest of UK Wales % Northern Ireland % Tenants occupying properties in London are now spending an average of 1,454 on rent for 1-bedroom properties, 1,923 for 2-bedroom properties and 2,679 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of 601 on rent for 1-bedroom properties, 718 for 2-bedroom properties and 830 for 3-bedroom properties. Since April 2017, average rents in the UK have risen by 0.70% to 1,201. In England, rents were up by 0.64% to 1,232/ month; in London, rents fell by -0.27% to 1,878. In Northern Ireland, rental prices rose by 1.80% to 571/ month. Meanwhile, in Scotland, rents rose slightly to 734/ month, following an average annual growth of 1.29%; in Wales, the average rent rose by 1.66% to

3 Key Feature: Rental Change Across the UK Top UK Rent-Risers Revealed The average rent for a property in England grew by 0.64% in the year to April, as falling rents in London (-0.27%) continued to weigh down on otherwise resilient rental growth in the rest of England (1.19%), according to the latest Landbay Rental Index, powered by MIAC. Hotspots for rental growth over the last 12 months include Leicester (3.02%), Nottingham (2.96%) and Northamptonshire (2.44%), with eight of the top ten rental risers situated in either the Midlands or of England. The two regions, as well as the South, continue to lead the way in terms of rental growth, with annual increases of 2.06%, 1.50%, and 1.54% respectively. Six London boroughs feature in the UK s bottom ten rental fallers over the past year, including Kensington and Chelsea (-1.40%), Kingston-upon-Thames (-0.98%), Hammersmith and Fulham (-0.81%), Tower Hamlets (-0.79%), Barnet (-0.69%) and Harrow (-0.68%), and in total half of the London boroughs (17 out of 33) have seen rents fall. Meanwhile, Bexley (1.37%), Havering (1.30%) and City of London (1.19%) have all seen rents rise by more than 1%, with just six boroughs exhibiting growth ahead of the 0.64% average in England. The average rent paid for a property in England now stands at 1,232, or 762 if you exclude London. The lowest average rent is found in the North (552), where rents have shown very modest long-term growth over the past five years, increasing by just 1.8% during this time. Despite a increase of 0.26%, rents in the North have been falling since the start of John Goodall, CEO and founder of Landbay said: Falling rents in some parts of the country, especially expensive prime London locations, distort the picture for the rest of England where rents are continuing to grow at a steady pace. Wherever they re based, landlords have had to face a significant amount of complex legislation in recent years, most of which has cost them a lot of money, so it wouldn t be surprising if they were to dramatically hike rents later in the year to recoup their losses. Partnered with the fact that rental demand shows no signs of giving up, prices will continue to rise over the coming years unless the government takes action. Without a radical house building plan for both first-time buyers and purpose-built rental properties, there is no way supply will ever be able to catch up with demand. 3

4 Analysis: Rental Change Across the UK Areas with the Highest Rental Growth in England Midlands Leicester % Midlands Nottingham % Midlands Northamptonshire % South Bath and North Somerset % England Peterborough % England Cambridgeshire % England Suffolk % England Norfolk % England Southend-On-Sea % South Bournemouth % Average rent () Average % growth (Year on Year) Areas with the Lowest Rental Growth in England London Harrow 1, % London Barnet 1, % South Wokingham 1, % London Tower Hamlets 1, % London Hammersmith & Fulham 1, % London Kingston-upon-Thames1, % South Windsor & Maidenhead 1, % England Luton % North Hartlepool % London Kensington & Chelsea 3, % Average rent () Average % growth (Year on Year) 4

5 Analysis: Rental Change by No. of Beds Regional Areas with Rental the Highest Growth Rental Across Growth England Across England 1 Bed Midlands / Rutland 619 month / 3.53% South- / Medway 811 month / 3.23% Midlands / Leicester 647 month / 2.81% 2 Bed Midlands / Nottingham 663 month / 3.04% England / Cambridgeshire 948 month / 2.72% Midlands / Northamptonshire 732 month / 2.56% 3 Bed Midlands / Leicester 647 month / 4.63% Midlands / Nottingham 663 month / 3.40% England / Peterborough 639 month / 2.99% 5

6 Analysis: Rental Change by No. of Beds Regional Areas with Rental the Lowest Growth Rental Across Growth England Across England 1 Bed England / Luton 639 month / -2.02% Kensington & Chelsea / London 2,122 month / -1.92% Kingston-upon-Thames / London 1,055 month / -1.55% 2 Bed North / Hartlepool 382 month / -2.29% London / Kensington & Chelsea 3,210 month /-1.40% South / Wokingham 997 month / -1.27% 3 Bed London / minster 4,232 month / -2.62% London / City of London 3,819 month / -2.59% London / Hammersmith & Fulham 2,755 month / -2.40% 6

7 Area Spotlight: Kingston-upon-Thames Rental Slump in South London As Kensington & Chelsea assumes its regular spot at the bottom of the rental growth tables (-1.40% ), this month sees the steady welcome of another London borough to the lowest rental growth rankings. Rents in the southern borough of Kingston-upon-Thames have tumbled into 5th place in a list of the areas with the lowest rental growth in England. Falling by -0.98%, growth in Kingston is only better than Luton, Hartlepool and Kensington & Chelsea in England. At 1,272, average rental prices are some of the most competitive in London. However, with even cheaper property prices and better transport connections, respectively, the neighbouring boroughs of Sutton and Merton are still beating Kingston in the rental popularity race. By beds, tenants can expect to pay an average of 1,055/ month for 1-bedroom properties in Kingston, 1,360 for 2-bedroom properties and 1,726 for 3-bedroom properties. 7

8 Rental Breakdown: Average Rents Across England Areas with the Highest Rents England, by County Region Area Average % change (YoY) Average Rental price () Rental prices by beds () South Surrey 0.00% 1, ,204 1,549 North Tyne & Wear 0.41% North Cheshire 0.77% South Bath and North Somerset 2.35% ,192 of England Hertfordshire 0.88% 1, ,119 1,443 Midlands Northamptonshire 2.44% Midlands Warwickshire 1.61% Yorkshire & Humber York 1.38% London Kensington & Chelsea -1.40% 3,024 2,122 3,210 5,459 8

9 Rental Breakdown: Average Rents Across England Areas with the Lowest Rents in England, by County Region Area Average % change (YoY) Average Rental price () Rental prices by beds () South Isle of Wight 1.35% North Hartlepool -1.19% North Blackburn with Darwen 1.38% South Torbay 1.82% of England Peterborough 2.24% Midlands Derby 1.86% Midlands Stoke on Trent 1.60% Yorkshire & Humber Kingston upon Hull 0.50% London Bexley 1.37% 1, ,307 9

10 About Rent Check & the Landbay Rental Index 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 geographically 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. 10