Hackney asking rents increase by two thirds in 10 years

Transcription

1 Q1 (January March 2018) Under embargo for 00:01 hours, Wednesday 28 th March 2018 Hackney asking rents increase by two thirds in 10 years Over the past decade the cost of renting a two-bed home in Hackney has risen by 63% to 1,755 per month, making it the area with the biggest increase in asking rents across Great Britain The growth compares with a 10 year average increase of 25% in London and of 16% nationally outside London to rent a two-bed home Dartford records the highest growth outside London, up by 41% from 751 to 1,063 per month, with the rest of the top ten dominated by other areas of Kent and Hertfordshire, plus Dundee and Edinburgh Rightmove also reveals the cheapest places to rent a two-bed home in each region, with areas including Barnsley, Stoke-on-Trent and Kilmarnock all with asking rents of under 500 per month So far in 2018 asking rents for all property types have risen by 0.9% outside London compared to this time last year, and have fallen by 0.1% in the capital NATIONAL AVERAGE ASKING RENT FOR ALL PROPERTY TYPES (EXCLUDING GREATER LONDON) Quarter per month Quarterly change Annual change % +0.9% Q % +0.7% GREATER LONDON AVERAGE ASKING RENT FOR ALL PROPERTY TYPES Quarter per month Quarterly change Annual change 1, % -0.1% Q , % +1.2% Asking rent trend for two-bed homes (indexed from Q = 100) 175 Hackney Dartford London UK (excl. London) Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 1 of 7

2 Potential tenants looking to rent in Hackney will find asking rents are almost 700 higher for a two-bed home compared to 10 years ago according to new analysis of over 200,000 two-bed rental properties by Rightmove. The top ten highest growth areas over the past 10 years are all in London, the list being a mixture of relatively more affordable areas like Dagenham and Eltham and areas like Harold Wood and Southall where upcoming Crossrail has pushed up rents. Rightmove s Housing Market Analyst Miles Shipside comments: Hackney has seen pretty heady increases in both asking rents and house prices in the area over the past ten years, as it has been transformed from a cheaper location into a more popular and higher-priced address. Its rise has been enhanced by the 2012 Olympics effect and improvements to transport links, with rents peaking in the second quarter of 2016 and plateauing in recent years. The growth in these areas compares with places like Barnes, Chelsea and Canary Wharf which seem to have topped out long ago as rents are pretty much the same as they were 10 years ago. Outside London the highest growth in rents is in Dartford, where asking rents are now over 300 more expensive than 10 years ago. Alongside other London commuter-belt areas in Kent and Hertfordshire are two Scottish cities, Dundee and Edinburgh, which have seen rental increases of 40% and 39% respectively. Renting a two-bed home in Edinburgh is now almost 1,000 a month, compared to just under 700 per month back in Dominic Kleywegt, Head of Lettings at Robinson Jackson in Dartford, comments: Tenants have been attracted to Dartford over recent years because of the quicker links into the capital. Dartford station was recently revamped and boasts links into Cannon Street, Victoria, London Bridge and Charing Cross and commuters have been able to use their Oyster card since With easy access to the M25, Bluewater and the Dartford tunnel, the area is highly sought after by tenants and therefore buy to let investors. So far in 2018 asking rents outside London have fallen by 0.2% when compared to Q4 of Annually, the strongest performing region is the East Midlands, where asking rents are up 2.6%. This compares to a national average annual change outside London of 0.9%. Rightmove s Housing Market Analyst Miles Shipside continues: Although the growth in asking rents has slowed over the past few years, people new to the rental market or those looking for a bigger property could find that they need to look further out than their initial wish-list of places, especially in the bigger cities around the country. A look at the first few months of this year shows the usual seasonal trend of asking rents falling slightly compared to the last quarter of last year, but we re likely see a rise again next quarter. London asking rents Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 2 of 7

3 remain flat compared to this time last year, a sign that we are highly unlikely to see the same big increases over the next ten years that we ve seen in some areas in the capital over the previous ten years. Top ten highest asking rent growth areas in London, Q year change Hackney 1,080 1,755 63% Hammersmith 1,824 2,894 59% Rainham 724 1,146 58% Southall 864 1,353 57% Hillingdon 866 1,344 55% Hayes 868 1,346 55% Dagenham 774 1,189 54% Walthamstow 914 1,393 52% Harold Wood 756 1,152 52% Eltham 800 1,217 52% London average 1,322 1,648 25% Top ten highest asking rent growth areas outside London, Q year change Dartford 751 1,063 41% Dundee % Bury St Edmunds % Edinburgh % Gillingham % Sevenoaks 888 1,229 38% Chatham % Waltham Cross 795 1,091 37% Bicester % Hemel Hempstead 764 1,046 37% National average outside London % Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 3 of 7

4 Cheapest rental areas in each region Region/Country Barnsley, South Yorkshire Yorkshire & the Humber 448 Burnley, Lancashire North West 421 South Shields, Tyne And Wear North East 456 Stoke-On-Trent, Staffordshire West Midlands 464 Alfreton, Derbyshire East Midlands 475 Kilmarnock, Ayrshire Scotland 472 Swansea Wales 556 Bridgwater, Somerset South West 612 Margate, Kent South East 665 Great Yarmouth, Norfolk East of England 544 Erith, Borough of Bexley London 1,072 National quarterly change in average asking rents 3.5% 3.0% 2.8% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% -0.4% -0.2% -0.2% -1.5% -2.0% -1.5% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 4 of 7

5 Regional trends Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 5 of 7

6 Top five highest growth areas outside Greater London Q Annual change Bury St Edmunds, Suffolk % Stratford-Upon-Avon, Warwickshire % Edinburgh % Southend-On-Sea, Essex % Sutton Coldfield, West Midlands % Top five most in-demand areas outside Greater London per month (2 bed) - Oldham, Greater Manchester 516 Prenton, Merseyside 510 Bootle, Merseyside 443 Rochdale, Greater Manchester 507 Grimsby, Lincolnshire 471 Top five highest growth areas in Greater London per month per month Annual (2 bed) Q (2 bed) change East Finchley 1,462 1, % Shepherds Bush 1,712 1, % Balham 1,746 1, % Rainham 1,061 1, % Elephant and Castle 1,654 1, % Top five most in-demand areas in Greater London per month (2 bed) - Forest Hill 1,323 Rainham 1,146 Camberwell 1,564 Sydenham 1,320 Peckham 1,528 Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 6 of 7

7 Editors notes Rightmove s Rental Trends Tracker records data since Q It is compiled from the asking rents of properties coming onto the market on Rightmove.co.uk. Rather than being a survey of opinions it is produced from factual data of actual asking prices of rental properties currently on the market. Rightmove s Rental Trends Tracker measures prices at the very beginning of the rental process. Quarterly data: Rightmove measured 311,027 asking rents. The properties were advertised on Rightmove.co.uk by agents from 1 st January - 22 nd March This month 13,632 properties have been excluded due to being anomalies. All short lets have been removed. For all areas lower than region the asking prices and % growth are for two bed properties. 10 year data: Comparing asking rents of two bed properties only from 1 st January 22 March 2008 with two bed properties from 1 st January 22 March Copyright 2018, Rightmove plc. Released Wednesday 28 th March. Page 7 of 7