Dataloft Briefing notes | Addressing topical issues in UK rental markets

We’ve identified the key relationships and strongest associations which explain higher rents.

In this Briefing note we draw on results from our Rental Potential Model.

Looking across 60 cities and towns; we’ve identified the strongest relationships which explain high rents, using correlations to express the strength of the relationship as a percentage.

The strongest relationship is between rents and renter earnings. High earnings explain high rents. The correlation is 86%.

Affordability has a similar correlation with rents achieved (85%).

This strong positive relationship largely means places with higher affordability have higher rents, the more telling analysis comes as we segment affordability and can see the potential for higher earners to spend more on rent.

This analysis is extracted from our ‘Rental Potential Model’ which ranks 60 towns and cities across the UK.

As with all our rental analysis, it draws on our DRMA dataset of rents achieved and renter demographics. If you would like to see an example of a report or talk to us about underwriting future rental values, please set up a call.

Set up a call

A PDF of this report is available to download here >