The UK rental market is in recession for the first time since the global financial crisis, according to The Deposit Protection Service (The DPS).
The latest figures from The DPS Rent Index reveal that during the second quarter of 2018, average monthly UK rent decreased for a second consecutive quarter for the first time since 2009, falling £7 or 0.97% from £771 to £764 per month.
Average rent also fell year-on-year for the first time since the financial meltdown, falling £10 or 1.3% from £774 per month.
The average rent was lower during Q2 2018 than Q2 2017 in every UK region except Northern Ireland, Scotland and the South West.
Yorkshire experienced the greatest percentage decline in average rent between Q2 2017 and Q2 2018 by 2.95% or £17 from £567 to £550.
London experienced the greatest value decline in average rent between Q2 2017 and Q2 2018 by £36 or 2.73% from £1,326 to £1,289.
Julian Foster, managing director at The DPS, said: “Following almost a year of low growth, the UK rental market is now in recession in almost every part of the country.
“On top of this, our prediction last quarter that rents would decline year-on-year in Q2 for the first time since 2009 have proven accurate.
“There are clearly long-term issues with the sector that are having a substantial effect on growth, particularly in the capital, and it’s difficult to see this negative trend ending any time soon.”
|
Region
|
Average rent in Q2 2018
|
Change since Q1 2018
|
% change since Q1 2018
|
|
London
|
£1,289
|
-£36
|
-2.73%
|
|
South East
|
£868
|
-£5
|
-0.56%
|
|
South West
|
£724
|
£2
|
0.31%
|
|
East
|
£801
|
-£7
|
-0.89%
|
|
East Midlands
|
£583
|
-£8
|
-1.38%
|
|
West Midlands
|
£616
|
-£9
|
-1.43%
|
|
Yorkshire
|
£550
|
-£17
|
-2.95%
|
|
North West
|
£595
|
-£1
|
-0.15%
|
|
North East
|
£532
|
-£3
|
-0.48%
|
|
Scotland
|
£646
|
£9
|
1.36%
|
|
Wales
|
£577
|
-£2
|
-0.39%
|
|
Northern Ireland
|
£542
|
£18
|
3.37%
|
|
UK
|
£764
|
-£10
|
-1.30%
|
The DPS’ outlook contrasts with HomeLet, which reports that rental prices continued to rise in August.
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