Countrywide Monthly Lettings Index – August 2013

Counrywide Residential Lettings

Tuesday, September 10, 2013

Lack of rental homes for families on the market 

Yields: Analysis from the UK’s largest lettings agency shows that landlords continue to achieve good returns on buy-to-let investments with yields remaining strong. The greatest yields are still being achieved in Wales at 6.6%, Midlands at 6.5% and North at 6.4%.

Average Monthly Rents: Two and three bedroom rental properties saw an increase in average monthly rents in August, up 0.6% and 0.9% respectively. One and four-plus bedroom properties saw a decrease in average monthly rents in August down 0.1% and 1.6% respectively.  There was a year-on-year increase in average monthly rents for all sizes of properties apart from four plus bedroom properties which decreased 6.4%.  

Table A: Variations in rents, yields and arrears data in England, Scotland and Wales for property sizes

Bedrooms

August 2013 Average Rent

July 2013 Average Rent

Rent month-on-month increase / decrease

August 2012 average rent

Yield %

Rent year-on-year increase / decrease

Arrears >30 days (% rent roll £)

1

£688

£689

-0.1%

£675

6.8%

2.0%

7.8%

2

£792

£787

0.6%

£763

6.4%

3.8%

7.9%

3

£906

£898

0.9%

£899

6.1%

0.7%

9.1%

4+

£1,447

£1,471

-1.6%

£1,546

5.4%

-6.4%

8.7%

Total

£867

£866

0.1%

£861

6.1%

0.7%

8.3%

Average monthly rents by region
Average monthly rents in the UK increased 0.1% in August to £867pcm, the highest level of rents for more than two years. The Midlands saw the greatest month-on-month increase in average monthly rents up 1.7%, followed by Scotland at 1.3%.  Despite some regional increases the average monthly rent fell in the East of England, (down 0.6%), the South East (down 0.7%) and Wales (down 2.7%).

Rent arrears: Rent arrears increased year-on-year in all regions.  In terms of property sizes the level of rent arrears increased for all sized properties, with two bedroom properties seeing the greatest increase, up 1.4%. 

Table B: Variations in rents, yields and arrears data in England, Scotland and Wales for regions

Region

August 2013 average rent

July 2013 average rent

Rent month-on-month increase / decrease

August 2012 average rent

Yield %

Rent year-on-year increase / decrease

Arrears >30 days (% rent roll £)

Greater London

£1,113

£1,113

0.0%

£1,095

6.2%

1.6%

9.1%

Central London

£2,425

£2,414

0.4%

£2,441

4.8%

-0.7%

8.7%

East of England

£839

£844

-0.6%

£834

6.2%

0.5%

8.6%

South East

£1,098

£1,105

-0.7%

£1,138

5.9%

-3.5%

6.9%

South West

£773

£772

0.2%

£772

5.7%

0.2%

6.5%

Midlands

£670

£659

1.7%

£668

6.5%

0.2%

8.1%

North

£640

£636

0.6%

£621

6.4%

3.0%

9.1%

Scotland

£644

£635

1.3%

£604

5.8%

6.5%

10.2%

Wales

£638

£656

-2.7%

£627

6.6%

1.8%

8.2%

Total

£867

£866

0.1%

£861

6.1%

0.7%

8.3%

Commenting on the Index, Nick Dunning, Group Commercial Director at Countrywide plc, said:

"August is traditionally a busy period for the rental market with tenants, particularly families, wanting to move into their new rented accommodation before the start of the school term in September. However, demand is not being met by supply and currently there is a particular lack of family-sized properties available to rent, especially in the South of England.  Improved conditions in the sales market are attracting reluctant landlords to sell these types of properties specifically in the catchment areas for good schools. With 4-5 tenants vying for every property, tenants need to act quickly. ”

-Ends-

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