The first issue of the Rent Check report – authored by property consultancy Allsop LLP and independent research consultancy BDRC continental – has found that the private rental sector in England and Wales is “stable, secure and promising” for landlords.
1,536 landlords across England and Wales were surveyed for the report between October 2012 and March 2013, 87% of whom achieve the asking rent or higher when taking on new tenants. 41% have been able to increase their rents over the past 12 months, compared to only 7% who have agreed to lower theirs.
27% of landlords anticipate growth over the coming 12 months, whilst 61% are confident about their business prospects.
The average monthly rent for a two bedroom flat is £708.64; for a three bedroom property, the average is £846.82. These figures are bolstered considerably by the London averages; £1,290 and £1,625 respectively. This represents around 40% of the average household’s disposable income, compared to around 30% outside of London. Outside of London, average rents ranged between £480 and £695 for two bedroom flats and between £500 and £935 for three bedroom properties.
The average tenant will stay in a property for two years and seven months, and three quarters of landlords said that they and their tenants enjoyed a good relationship.
At 3.8 million households, the private rental sector now accounts for 17% of the UK housing market, and the figure is rising faster than that of any other type of tenure.