The UK rental market remained in recession during the third quarter of 2018, the latest figures from The Deposit Protection Service (The DPS) show.
The rental index, based on the deposit protection service’s database of millions of properties across the UK, reveals that average rents dropped for the third consecutive quarter in Q3 2018, falling from £764 per calendar month (pcm) to £761pcm.
The average UK rent has now decreased £14, or 1.83%, since Q3 2017 and is now lower than the national average for 2016, according to the DPS.
Another quarter of lower rents in Q4 2018 would mean the first full year of negative growth since the global financial crisis in 2008 and 2009, based on the data provided by the index.
Julian Foster, Managing Director at The DPS, said: “A third consecutive quarter of declining UK rents signals that there will be no immediate bounce back from the recession that hit the market last quarter.
“This negative period forms part of a slowdown that began in the summer of 2016, which we believe is linked to broader economic factors that are affecting spending power and demand.
“Another quarter of lower rents in Q4 2018 would mean the first full year of negative growth since the global financial crisis in 2008 and 2009: a significant threshold for the market.”
The greatest decline in rents was recorded in the East Midlands, falling by £14, or 2.47%, from £583pcm to £569pcm during Q3 2018.
Northern Ireland saw the biggest jump, rising by £15, or 2.68%, from £542pcm to £557pcm, which also represented the region’s second consecutive quarter of growth.
Across the UK average rents fell on all property types during Q3 2018 except detached houses, for which rent increased by £8 or 0.84% from £975pcm to £983pcm.