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Rental Index ReportFebruary 2018Powered by MIAC

Key Feature: East Midlands on High, Following Triple Average UK Growth

Area Spotlight: Nottingham – the Family-Friendly Zone

Analysis: Regional Growth Across UK

Statistics: February 2018

Rental Breakdown: Average Rents Across England

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Average Rental Price Rise Across the UK - Year on Year

England

London

Scotland

Wales

Northern Ireland

£1,231

£1,878

£732

£646

£568

0.64%

-0.39%

1.29%

1.45%

1.47%

Statistics: February 2018

Rents in London are not incurring any monthly growth and falling by -0.39% annually, while rents across the rest of the UK are growing by 0.08% every month and 1.27% annually.

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 £2,675 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of £600 on rent for 1-bedroom properties, £716 for 2-bedroom properties and £829 for 3-bedroom properties.

Since February 2017, average rents in the UK have risenby 0.69% to £1,199. In England, rents were up by 0.64%to £1,231/ month; in London, rents fell by -0.39% to £1,878. In Northern Ireland, rental prices rose by 1.47% to £568/ month. Meanwhile, in Scotland, rents rose slightly to £732/ month, following an average annual growth of 1.29%; in Wales, the average rent rose by 1.45% to £646.

Year on Year

Month on Month

Average Rent by No. of Beds

1 2 3 £1,454 £1,923 £2,675

Rental prices according to no. of beds

1 2 3 £600 £716 £829

Rental prices according to no. of beds

London Rest of UK

London

0.00%

London

-0.39%

Rest of UK

0.08%

Rest of UK

1.27%

Average Growth in London vs Rest of UK

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Key Feature: Triple Growth in East Midlands

East Midlands on High, Following Triple Average UK Growth

Residential rents in the East Midlands grew by 2.24% in the 12 months to February, the fastest rise of any UK region and more than three times the UK average of 0.69%, according to the latest Landbay Rental Index, powered by MIAC.

The region with the second fastest pace of rental growth is the East of England, where rents grew by more than twice the UK average (1.58%). Within the region, Peterborough (2.99%) and Cambridgeshire (2.24%) both saw considerable growth, while in Luton rents fell by -0.13%, having been among the fastest growing counties at this point last year (4.83%).

Even with the rapid growth, renting remains more affordable in both the East Midlands (£626) and East of England (£910) than the average across the UK. The average UK rent now stands at £1,199 per month, a 0.69% increase on this time last year. London rents remain, on average, 2.5 times greater than those across the rest of the UK (£1,878 vs £761), while rents in the South East (£1,053) also well surpass the average.

The East Midlands has seen the fastest pace of rental growth out of all UK regions for the past 11 months. At a county level, Leicester (3.42%) and Nottingham (3.30%) have experienced the most substantial rental growth in the region, both outstripping UK inflation which currently stands at 3%.

There is a lot of variation in rental growth within property sizes in the East Midlands. For example, in Leicester rental growth is driven by 1-bed and 3-bed properties, with rents for these properties increasing by 4.03% and 5.01% respectively. In contrast, a 2-bed property grew by just 1.41% year on year, pointing to a glut of 2-beds in Leicester.

John Goodall, CEO and founder of Landbay said: “Much like Britain’s weather, rental growth was heavily impacted by the East in February. With its more affordable rents, the East is seemingly becoming an increasingly attractive buy-to-let region and as a result greater competition is driving up rents. As London rents remain unsustainably high this comes as little surprise, suggesting that many are moving further afield to reduce their rent burden while they save for a house of their own.

“At a national level, an uplift in rents has been on the cards for a while and is likely to continue into 2018. The Prime Minister has this week vowed to get tough with property developers who sit on planning permissions, but if we truly want to control rental and house price growth we need to build more homes, not just plan them. Areas in the East Midlands and East of England, such as Leicester and Nottingham, where rental growth is reaching particularly unsustainable levels, should be the prioritised focus for the government, developers and landlords.”

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Analysis: Regional Growth Across UK

Regional Rental Growth Across EnglandAverage Regional Rental Growth Across England (Year on Year)

North West1.09%

North East0.53%

Yorkshire & Humber1.36%

East of England1.58%

South East0.73%

South West1.57%

London-0.39%

East Midlands2.24%

West Midlands1.54%

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£619 £1,053 £553

£626 £748 £910

£577 £1,878 £685

North West South East North East

East Midlands South West East of England

Yorkshire & Humber London West Midlands

Average Regional Rental Prices Across England

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Breakdown of Average Rents and Growth Across East Midlands

Region

Northamptonshire 729 2.56 0.15

Year on

Year (YoY)February - 2018

Month on

month (MoM)

Average rent (£) Percentage change (%)

Nottingham 662 3.30 0.16

Leicestershire 647 1.77 -0.08

Leicester 647 3.42 0.12

Rutland 618 0.82 0.25

Lincolnshire 603 1.63 0.11

Nottinghamshire 593 1.91 0.14

Derbyshire 556 1.27 0.13

Derby 548 2.20 0.30

Breakdown of Average Rents and Growth Across East Midlands

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Analysis: Regional Breakdown – East Midlands

The Family-Friendly ZoneAs growth in the East Midlands storms past the national average (0.69%) year on year (YoY) to stand tall at 2.24%, the central area of Nottingham features as a particularly rich spot for rental activity, with growth here rising by 3.30% in the last year. This is only 0.12% less than in Leicester, the area with the greatest rental rise in the region.

Sandwiched between Derbyshire and Lincolnshire, Nottingham stands out as the only area in the region where the average price of 3-bedroom properties (£673/ month) are cheaper than 2-bedroom properties (£679). Particularly at a time when the cost of living is high, this is a huge draw for growing families, as they are effectively able to get more for their money.

In comparison to 3-bedroom properties in Nottingham, 2-bedroom rents have increased significantly over the last year (3.37%), so much so that the area is 6th in a list of the top 30 places with the greatest year on year percentage change for 2-bedroom properties. In comparison, 3-bedroom homes only increased by 2.76%.

Area Spotlight: Nottingham

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Region AreaAverage %

change (YoY)Rental pricesby beds (£)

Rental Breakdown: Average Rents Across England

Average Rentalprice (£)

Surrey

Tyne & Wear

Cheshire

Bath and North

Hertfordshire

Northamptonshire

Warwickshire

York

Kensington &Chelsea

East Somerset

1 x

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

2 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

-0.30%

0.77%

0.89%

2.75%

0.67%

2.56%

1.90%

0.70%

-1.19%

£1,437

£599

£705

£977

£1,147

£729

£825

£760

£3,037

£910

£464

£495

£819

£840

£548

£634

£644

£2,120

£1,195

£547

£647

£1,002

£1,113

£685

£785

£778

£3,219

£1,548

£650

£750

£1,199

£1,443

£806

£860

£916

£5,479

SouthEast

NorthEast

NorthWest

SouthWest

East of England

EastMidlands

WestMidlands

Yorkshire& Humber

London

Areas with the Highest Rents England, by County

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Region AreaAverage %

change (YoY)Rental pricesby beds (£)

Rental Breakdown: Average Rents Across England

Average Rentalprice (£)

Isle of Wight

Hartlepool

Blackburn

Torbay

Peterborough

Derby

Stoke on Trent

Kingston upon Hull

Bexley

1 x

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

2 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

3 x

1.10%

-0.28%

0.52%

1.45%

2.99%

2.20%

2.21%

0.73%

1.80%

£572

£408

£424

£575

£640

£548

£471

£437

£1,014

£509

£355

£345

£485

£515

£413

£397

£359

£826

£592

£387

£419

£626

£667

£562

£446

£434

£1.079

£822

£458

£487

£773

£723

£635

£554

£514

£1,317

SouthEast

NorthEast

NorthWest

SouthWest

East of England

East Midlands

WestMidlands

Yorkshire& Humber

London

Areas with the Lowest Rents in England, by County

with Darwen

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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