Landlord Report: Westminster sees highest rent increases Landlord Report: Westminster sees highest rent increases

Landlord Report: Westminster sees highest rent increases

Direct Line for Business reveals that average rents for private properties increased faster in Westminster than anywhere else in England last year.

  • Average rents for private properties increased by 28.4 per cent in Westminster last year
  • Average private rents increased in 87 per cent of England’s counties, however,  13 per cent saw a decrease 
  • The average annual cost of a private rental property in Kensington and Chelsea comes in at £37,560 compared to just £8,448 in Manchester and £5,736 in Liverpool
  • Check out our new Interactive Rent Level Changes Heat Map

London, 16th October 2015: New analysis1 by Direct Line for Business reveals that average rents for private properties increased faster in Westminster than anywhere else in England in 2014, rising 28.4 per cent.  The average rental increase in Westminster outstripped such affluent areas as Sevenoaks (where charges increased 10.5 per cent), Richmond upon Thames (up 8.7 per cent) and Guildford (down 5.6 per cent). 

Across England last year, average private rents increased in 87 per cent of counties. Increases in some areas could be due to the demand for rental properties  for new tenants, a churn of new tenants in student areas, or newly rented properties (e.g. new builds), both of which command higher than average rents. Private rental charges saw a decrease in almost one in five (13 per cent) areas.  

Double-digit private rent increases were recorded in 11 per cent of areas in 2014. However, there were dramatic falls in average private rents across a number of regions.  In the Three Rivers area, rents fell by almost a fifth (19 per cent) during 2014, while in Chiltern they fell 11.3 per cent.

Table One:  Highest increases and decreases in annual rents for private properties across England in 2014

Local authority Highest increase in annual rents for private properties in 2014 Local authority Largest decrease in annual rents for private properties in 2014
Westminster

28.4%

Three Rivers

-19.0%

Manchester

22.4%

Chiltern

-11.3%

Newcastle upon Tyne

20.5%

South Bucks

-9.8%

Camden

19.2%

Exeter

-7.9%

Elmbridge

15.9%

Epping Forest

-7.4%

Warwick

15.6%

Merton

-6.4%

Croydon

15.3%

Test Valley

-5.8%

Ipswitch

15.2%

Guildford

-5.6%

Islington

14.9%

Waverley

-4.2%

Forest Health

14.3%

South Derbyshire

-4.0%

Source: Analysis by Direct Line for Business Landlord Insurance of Valuation Office Agency data  

Jane Guaschi, Business Manager at Direct Line for Business commented: “The research highlights that rental incomes are anything but static or predictable across England. Too often people forget the risks landlords take when renting out a property. The income they can generate is not guaranteed to stay the same each year, let alone rise.  Where landlords are able to secure rent increases, they will often reinvest this money in the property making improvements.  In the future, they may need to use the income generated by any rent increases to offset the impact of government changes that will see higher-rate relief on mortgages dramatically reduced.

“Keeping track of income and expenditure can be a challenge for landlords, which is why Direct Line for Business has developed the Mobile Landlord App. The App can help landlords keep an accurate record of the money generated by their properties and also the expenses incurred in running costs, repairs and mortgage payments via an inbuilt yield calculator.” 

Analysis reveals private properties in one of London’s most desirable boroughs, Kensington and Chelsea, cost 679 per cent more to rent annually than properties in Kingston upon Hull.  Average annual private rentals in Kensington and Chelsea cost £37,560 in 2014 compared to just £4,824 in Kingston upon Hull.  Predictably, London boroughs top the league table for most expensive private rents in England, with the majority of cheaper private rental properties located in the North of England where average house prices are also significantly lower.  Of the top twenty most expensive areas to rent private housing stock, only two are located outside London: Elmbridge in Surrey and Sevenoaks in Kent. 

Table Two:  Highest and lowest average private rental charges across England in 2014

Local authority Highest average annual rents for private properties in 2014 Local authority Lowest average annual rents for private properties in 2014
Kensington and Chelsea

£37,560

Kingston upon Hull, City of UA

£4,824

Westminster

£35,880

Burnley

£5,232

Camden

£26,700

Hyndburn

£5,304

City of London

£26,328

Stoke-on-Trent UA

£5,304

Richmond upon Thames

£24,252

North East Lincolnshire UA

£5,352

Hammersmith and Fulham

£23,064

Scarborough

£5,472

Islington

£22,800

Carlisle

£5,484

Elmbridge

£21,960

Pendle

£5,508

Wandsworth

£21,216

Derby UA

£5,532

Hackney

£19,692

Country Durham UA

£5,580

Source: Analysis by Direct Line for Business Landlord Insurance of Valuation Office Agency data  

The Mobile Landlord app enables landlords to manage up to five properties on the go. Mobile Landlord is free to download and available immediately on both iOS and Android.

If you are considering buying a rental property and would like more information on the responsibilities and obligations associated with being a landlord, or for more tips and guidance, please visit the Landlord Knowledge Centre:

http://www.directlineforbusiness.co.uk/landlord-insurance/knowledge-centre

Notes to editors

1 Analysis by Direct Line for Business Landlord Insurance of Valuation Office Private Rental Market statistics published in May 2015. Analysis reference only to private rental properties where no government assistance or contribution towards rental payments was provided.

Citigate Dewe Rogerson
Amrit Nijjer
Tel: 020 7282 2803
Email: amrit.nijjer@citigatedr.co.uk

Direct Line Group
Jade Trimbee
PR Manager
Tel: 013 7283 9452
Mobile: 07825 315 931
Email: jade.trimbee@directlinegroup.co.uk  

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or online.

Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line for Business and U K Insurance Limited are both part of Direct Line Insurance Group plc.

Customers can find out more about Direct Line for Business products or get a quote by calling 0345 301 4827 or visiting www.directlineforbusiness.co.uk

Landlord Insurance Press Release

Added: 15th October 2015