Following the latest batch of figures released by The Deposit Protection Service (The DPS), data indicates that the rental market has in fact changed in favour of tenants. This, resulting from a combination of higher wages and lower deposits.
Whilst other factors have likely impacted the renting environment, the 2.69% increase in average salary (£29,559 to £30,353) and 8.51% decrease in average tenancy deposits (£905 to £828) recorded since June last year has played a significant part. These, following the introduction of the deposit cap.
Matt Trevett, the Managing Director of The DPS, reflected on this stating: “Although rents have risen over the past decade, other changes since 2016 have helped ensure renting has become on average more affordable.”
“Predictions that rents would rise in response to the introduction of the tenant fees ban and deposit cap do not seem to have materialised, with many landlords seemingly declining to increase rents since last summer.”
What this has ultimately lead to is an improvement in the affordability of renting, with the numbers indicating that tenants are spending a smaller percentage of their income on rent. To be precise, whilst tenants spent 32.64% of their income on rent in 2016, this has since dropped to 30.64% in 2019.
The biggest impact on the cost of renting, however, remains to be the location. Whilst The DPS has highlighted a 0.51% decrease in average rent prices from Q3 2019 to Q4 (£777 to £773), Northern Ireland actually saw an increase of 3.01%.
Whether you are interested in letting your property or looking to rent. help is close at hand thanks to our team of local experts.