Rental Inde Report August 07 Powered by MIAC Key Feature: London Student City, Graduate Magnet Statistics: UK Area Spotlight: Midlands Beyond London: Rental Price Breakdown Across England
Statistics: August 07 London vs Rest of UK Average Rental Price Rise Across the UK - Year on Year Northern Ireland 0.8 % 56 Scotland.4 % 78,874 London 757 Rest of UK Tenants occupying properties in London are now spending an average of,874 on rent, whilst tenants outside the capital are paying 757 on average. England 0.6 %,5 Average Rent in London vs Rest of UK,445,97,68 Rental prices according to no. of beds 597 74 84 Rental prices according to no. of beds London Rest of UK Wales.4 % 640 London -0.94 %,874 Tenants occupying properties in London are now spending an average of,445 on rent for -bedroom properties,,97 for -bedroom properties and,68 for -bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of 597 on rent for -bedroom properties, 74 for -bedroom properties and 84 for -bedroom properties. Since July 06, average rents in the UK have risen by 0.67% to,94. In England, rents were up by 0.6% to,5/ month; in London, rents increased relatively by -0.94%. In Northern Ireland, rental prices rose by 0.8% to 56/ month. Meanwhile, in Scotland, rents increased slightly to 78/ month, following an average annual growth of.4%; in Wales, the average rent rose by.4% to 640.
Key Feature: London Student City, Graduate Magnet London Student City Remains a Grad Magnet, as Monthly Rents Hint at Increase 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 eperience 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 epensive in the UK, forcing many to relinquish a sizeable chunk of their loan to living out. At an average monthly cost of,9, the popular student borough of Camden is one of the costliest areas of London, following closely behind the City of minster. Other popular student hangouts include Hackney and Southwark, which ask for a respective average rent of,78 and,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 eciting rental options at cheaper than average central London prices. At average rents of,004,,5 and,056 per month, the outer boroughs of Beley, 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. Camden,9 Camden Hackney Havering Hackney,78 Sutton Havering,5 Sutton,056
Top 7 Least Affordable Boroughs to Rent in London,74 0.5% Tower Hamlets,89-0.0% Islington,074,886 0.% City of London 0.00% Hammersmith & Fulham,9-0.08% Camden,89-0.0% minster,04-0.% Kensington & Chelsea Average percentage rental change is calculated according to average rental value in the previous month (July 07). Top 7 Most Affordable Boroughs to Rent in London,004 0.05% Beley,004 0.05% Beley,056 0.07% Sutton,056 0.07% Sutton,07 0.07% Havering,5 0.%,5 Croydon 0.% Croydon,69-0.% Bromley,69-0.% Bromley,9 0.0% Hillington,0 0.08% Barking & Dagenham Average percentage rental change is calculated according to average rental value in the previous month (July 07). 4
Statistics: UK Average Rents in the Areas of the Top 0 UK Universities, By No. of Beds -.6% Average Rent:,04 Imperial College London - Kensington & Chelsea,5, 5,44.% Average Rent: 905 University of Bristol 749 969,0 Average Rent:,89 Average Rent: 759 -.8% King s College London - minster,09,95 4,0 0.6% University of Southampton 599 845 995 Average Rent:,9 Average Rent: 706 University College London - Camden University of Birmingham -.%,60,69,.6% 55 680 78 Average Rent:,90 Average Rent: 668 University of Oford University of Manchester 0.8% 880,066,80.5% 54 6 77.4% Average Rent: 96 Average Rent: 647 University of Cambridge University of Nottingham 76.68% 56 90 664,07 656 Average percentage rental change is calculated according to average rental value in the previous year (August 06). 5
Area Spotlight: Midlands Midlands One to Watch The 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 Midlands region, the 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.8%, the Midlands is catching up fast with an average Month on Month (MoM) growth of 0.% since July 07. This is 0.08% more than the average monthly growth eperienced by Stoke on Trent. Average rent in the Midlands now sits at 85, the highest of all the counties in the Midlands region and 4 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 eample, according to Birmingham council s Big City Plan, an enormous development programme planned across 0 years, the council hopes to build over 5,000 new homes,.5 million sqm of new floorspace and over 50,000 new jobs, to name a few. This is undoubtedly epected to bring in more new tenants, as the Midlands becomes an increasingly important and attractive regional centre of commerce. Average rental price,44 St. Albans ~5 min to St. Pancras Cheshunt ~5-40 min to Euston Hertfordshire 6
Beyond the London Commute: Areas with the Highest Rents in England, by County Region Area Average % change (YoY) Average Rental price () Rental prices by beds () South East Surrey -0.%,440 9,97,556 North East Tyne & Wear 0.05% 594 46 545 645 North Cheshire.5% 706 499 646 75 South Bath & North East Somerset.09% 965 8,004,89 East of England Hertfordshire.%,45 84,08,448 Midlands Warwickshire.8% 85 66 78 854 Yorkshire & Humber York 0.54% 754 65 775 905 London Kensington & Chelsea -0.8%,04,5, 5,44 7
Beyond the London Commute: Areas with the Lowest Rents in England, by County Region Area Average % change (YoY) Average Rental price () Rental prices by beds () South East Isle of Wight.88% 57 498 597 85 North East Hartlepool 0.78% 4 65 95 456 North Blackburn with Darwen -0.06% 4 4 44 489 South Torbay.5% 57 48 64 767 East of England Peterborough.84% 6 5 66 70 Midlands Stoke on Trent.8% 467 98 44 547 Yorkshire & Humber Kingston upon Hull.% 46 56 46 509 London Beley.98%,004 87,066,95 8
About Rent Check & the Landbay Rental Inde 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 Inde, powered by MIAC. The inde 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 Inde The Landbay Rental Inde 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 inde is highly dependent on the breadth and depth of underlying data used, which is why this rental inde utilises data from Zoopla, the British property website. Approimately 00,000 properties are analysed each month to form the inde. The rental values are mi 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 Inde; 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. 9