DPS Rent Index Q4 2019 – Higher wages and lower deposits help take the sting out of renting

[ Music ]>>Hi, and welcome to
the latest video round-up of the DPS Rent Index. As we step into a new
decade, let’s take a look back at the stats and facts
for the final quarter of 2019 and beyond. Average rents have continued
to rise over the last 10 years, but the percentage of wages
being spent on rent has fallen since its peak in 2016. And with the average
UK salary increasing over the last 12 months
to over £30,000 pounds, renting is now relatively
more affordable than at any time since 2013. In the sixth month period
prior to the Tenant Fees Ban and Deposit Cap coming
into force, we’ve seen average deposit
values decrease significantly from £905 pounds
to £828 pounds. Commentators speculated that
rents would have increased as a result of the Fee
Ban, but we haven’t seen that materialise as yet. In fact, average rents have only
increased marginally by 11 pounds in the 12 months since Q4
2018, up from £762 pounds. However, it’s also the year where we saw the highest monthly
rental value of £777 pounds, since the Deposit Protection
Service first launched in 2007. Average monthly rent in the
UK now stands at £773 pounds, a marginal decrease of £4
pounds on the previous quarter. Northern Ireland
experienced the biggest change in average rental value across
the UK, from £532 pounds to £548 pounds, a
£16 pound increase. At the other end of the
spectrum, average monthly rent in Yorkshire and the Humber
decreased by £27 pounds, from £551 pounds
to £524 pounds. As ever, London continues to
be the most expensive region in which to rent property. The capital saw a
£13 pound increase in average monthly rent,
rising to £1,345 pounds. This is over two and a half
times the average monthly rent of £518 pounds, which is paid in the UK’s cheapest
region, the North East. Year on year the
difference is even higher. Average monthly rent
in London has climbed by £55 pounds compared
to this time last year. By property type, Terraced
houses have declined the most in average rents,
falling by £4 pounds to from £732 pounds
to £728 pounds. In contrast, Detached properties
have seen the largest increase in average rents, rising by
£8 pounds from £990 pounds to £998 pounds in the
final quarter of 2019. Make sure you check
out the latest issue and see how your region
stacks up compared to the rest of the UK. You can find the index
by clicking the link in the description below. Thank you for watching. [ Music ]

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