Rental Growth Remains Below Inflation Rate
Rental growth remains in positive territory – just – but on average it’s still well below the general level of inflation according to new figures.
A survey from specialist lender Landbay shows that the average rent paid for a property in the UK now stands at £1,217, or £772 if you exclude London; this is a meagre 0.96 per cent more than a year ago.
The relatively few hotspots for rental growth over the last 12 months identified by the lender include Edinburgh City (5.97 per cent), Nottingham (4.28 per cent), and Blaenau Gwent (3.76 per cent).
In London, rental growth is picking up again slightly after last year’s slump; it’s now 0.57 per cent on average across the capital contrasting with a tiny fall this time last year.
Only three London boroughs continue to fall; Kensington and Chelsea (down 0.54 per cent), Merton (down 0.17 per cent), and Enfield (down 0.08 per cent). Average rent in London now stands at £1,903, a cumulative rental growth of 9.32 per cent since January 2012.
The average rent paid for a property in the UK now stands at £1,217, or £772 if you exclude London.
The lowest average rent is found in Northern Ireland (£576), where rents have shown very modest long-term growth. In England, average rent is £1,248. The second highest region (after London) is the South East at £1,064, while lowest average rent stands at £553 in the North East – this region has seen cumulative growth of just 2.08 per cent since January 2012.
Landbay says Scotland is something of a tale of two cities, boasting both the fastest and slowest growing locations.
Aberdeen City and Aberdeenshire are at the bottom of the annual growth league table, with falls of 5.59 and 4.31 per cent respectively.
The worst performing areas in England are Redcar and Cleveland (down 1.48 per cent), Kensington and Chelsea (down 0.54 per cent) and Bracknell Forest (down 0.24 per cent).