There was increased demand for rural and larger properties compared with urban properties during the third quarter of this year, according to data from The Deposit Protection Service
Newly released data from The Deposit Protection Service (DPS) has revealed that rents increased in many rural areas and fell sharply in some cities over the summer as more UK tenants looked to relocate from town to countryside.
The change in tenant behaviour mirrors that of homeowners with more people working from home due to the ongoing pandemic.
The DPS said the data from its quarterly Rent Index show increased demand for rural and larger properties and lower demand for urban properties and flats during the third quarter of 2020.
Data shows that flats fell on average by £5 (-0.63%) to £795, while rents rose for detached, semi-detached and terraced properties. UK tenants paid on average 31.08% of their average £30,353 annual wages on rent during the last quarter, added the organisation.
The data also revealed regional changes, including a 1.58% increase in average rents in the South East of England. Across the UK average rents dipped £2 (-0.26%) to £780 during Q3 2020, said The DPS.
Matt Trevett, Managing Director at The DPS, said: Our latest Rent Index clearly shows that tenants are following homeowners in reconsidering city living and moving to the countryside.
The prevalence of homeworking seems to be causing many urban renters to reassess their priorities, including a new desire for increased indoor and outside space. Greater demand for both rural and larger properties seems to have driven rent prices up while urban property and flats have become cheaper for tenants, he said.
Paul Fryers, Managing Director, Zephyr Homeloans, adds: The DPS’ latest figures illustrate how quickly the coronavirus pandemic has influenced tenants’ behaviour. Landlords are looking strategically at their portfolios to maximise yields, which, along with the Government’s decision to suspend stamp duty on the first £500,000 on all property sales until the end of March, is adding to increased activity in the buy to let mortgage market.
