ONS private rental price index

by Property 118

10:03 AM, 17th June 2020
About 2 months ago

ONS private rental price index

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ONS private rental price index

The Office of National Statistics (ONS) has released its annual report on the private rental market summary statistics England for April 2019 to March 2020. Click here

This report shows the median monthly rental prices for the PRS in England using data from the Valuation Office Agency:

The median monthly rent was £700 for England, recorded between 1 April 2019 and 31 March 2020 and it has not been higher.

London had the highest median monthly rent at £1,425.

The North East had the lowest median monthly rent at £495.

The highest monthly rent was for properties with four or more bedrooms at £1,300 compared with the lowest monthly rent at £400, which was for single rooms.

There was a large difference in median monthly rents between studios at £55 and single rooms at £400, which could have been driven by high volumes of data in the sample of studios located in London and the South East (representing just under half of the sample size).

The interquartile range increased with property size. The spread of rents was greatest for the “four or more bedrooms” category because of the inclusion of very large properties. The correspondingly higher rents of these large properties drove the sharp increase in both median rent and spread of rents in this category compared with three-bedroom properties.

Rental prices and spread of rents tended to be higher in the East and the southern regions of England than in the Midlands and northern regions.

London’s median monthly rent at £1,425 compares to the next highest which was £900 in the South East. The lowest median monthly rent was £495 for the North East.

Rent prices in Inner London tended to be higher than for Outer London. The median monthly rent for Inner London was £1,700, compared with £1,295 for Outer London. Most regions had a similar spread of rents, but London rents had the greatest range of prices of all regions. This reflects the large range of property types and sizes in London and the range in associated rental price.



Comments

Dr Rosalind Beck

10:48 AM, 17th June 2020
About 2 months ago

Useful to have the median rather than the mean. And also to have the London and rest of UK separately as London is so distorting.

David Price

15:46 PM, 17th June 2020
About 2 months ago

Reply to the comment left by Dr Rosalind Beck at 17/06/2020 - 10:48
A girl who knows mean from median; cover up Ros, your education is showing.
It is interesting to note that, even with the temporary increse in housing allowance, benefit tenants can only afford properties roughly below the lower quartile.

Rennie

20:54 PM, 17th June 2020
About 2 months ago

Reply to the comment left by Dr Rosalind Beck at 17/06/2020 - 10:48
I am sorry but I can't be alone in this. There must be more people who don't know the difference between median and mean. Please would you explain?

David Price

6:15 AM, 18th June 2020
About 2 months ago

The "mean" is the "average" you're used to, where you add up all the numbers and then divide by the number of numbers. The "median" is the "middle" value in the list of numbers.

Not my original words taken directly from a web search. More at https://www.purplemath.com/modules/meanmode.htm

Ian Narbeth

10:58 AM, 18th June 2020
About 2 months ago

Reply to the comment left by Rennie at 17/06/2020 - 20:54If there are ninety nine people in a room each worth £100,000 and Jeff Bezos walks in the mean wealth in the room is over $1 billion but the median wealth is £100,000.

David Price

12:42 PM, 18th June 2020
About 2 months ago

Reply to the comment left by Ian Narbeth at 18/06/2020 - 10:58
Excellent example Ian; to the uninitiated Mean and Median are easily confused because often they are numerically similar, your example shows that they can be radically different. This reminds me of my favourite quotation by Aaron Levenstein:-
“Statistics are like bikinis. What they reveal is suggestive, but what they conceal is vital.”
For anyone genuinely interested in Statistics the 'Schaum's Outline of Statistics' is one of the best books I have encountered.


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