Rent Check report reveals value of rental market

Sam Cordon

May 20, 2013

The Rent Check report measures actual rents agreed by more than 1,500 private landlords in England and Wales who are members of the National Landlords Association, allowing comparisons to be made by region and property type.

Mark Long, director at BDRC Continental, said: “The Rent Check report will track movements in the private rented market every six months analysing changes in actual rental rates by property type and region. We believe it is the final piece of the jigsaw providing essential insight into this important part of the housing market rather than relying on the marketing material and advertised rental rates that have been available until now.”

The data showed that 87% of landlords achieve their listed asking rent or higher, 61% are confident in the prospects for their own letting business and 41% have agreed higher rents over the past 12 months compared to 7% who had agreed lower rents.

And the findings revealed the average tenant term of residence was in excess of two and half years while rent consumed around 30% of tenants’ income.

Paul Winstanley, partner at Allsop LLP and co-author of the report, said: “The demand for rented housing and the constraints on the wider housing market mean that rented housing is likely to retain the same income dynamics for the medium to long-term. The rented sector is growing at such a rate that landlords will share in a secure and attractive return.”

The report compares rents by property type across England and Wales. Excluding London the average monthly rent for a two bedroom flat ranges from £480 in the North East to £695 in the South East.

Rent for a three-bedroom property, terraced and semi-detached houses, ranges from £500 in the North East to £935 in the South East.

For all regions outside of London the average rent for a two-bed flat would consume less than 34% of household disposable income.

Meanwhile in London average monthly rents for a two-bed flat are £1,515 in zones one and two, £1,060 in zones three to six, £1,815 for a three-bed property in zones one and two and £1,435 further out in zones three to six.

The comparative figure for rent as a proportion of disposable income for a two-bed flat in London is 42% for zones three to six.

Sign up to our daily email