APRIL 09, 2019 | BY A & S Property
London drags down average rents across UK, which are ‘growing at a steady pace’
The average rent for a property in the UK increased by 0.96% in the year to March but London remains a drag on the market after slow growth in the capital.
The latest Landbay Rental Index shows that rents are rising fastest at 6% in Edinburgh City, followed by 4.28% in Nottingham and 3.76% in Blaenau Gwent.
The high growth areas are spread throughout the UK; of the top ten ‘rental risers’, two counties are in Scotland, three in Wales, two in the East Midlands region and three in the rest of England. Across the higher level country data, Scotland has the highest overall annual rental growth at 1.99% while Northern Ireland is growing at just 0.63%.
Meanwhile, slow rental price inflation in London of just 0.57% continued to weigh down on otherwise resilient rental growth in the rest of the UK at an average of 1.16%.
But only three boroughs saw rents fall in the year to March; Kensington and Chelsea (-0.54%), Merton (-0.17%), and Enfield (-0.08%).
Average rent in London now stands at £1,903 per calendar month (pcm), a cumulative rental growth of 9.32% since January 2012.
The average rent paid for a property in the UK now stands at £1,217pcm, or £772pcm if you exclude London.
Scotland is something of a tale of two cities, featuring both the fastest and slowest growing locations.
Aberdeen City and Aberdeenshire are at the bottom of the annual growth league table, with growth of -5.59% and -4.31% respectively.
Of the other eight, a further one is in Scotland (Angus at -0.83%) while the other seven are in England. The slowest three areas of rental growth in England are Redcar and Cleveland (-1.48%), Kensington and Chelsea (-0.54%) and Bracknell Forest (-0.24%).
John Goodall, CEO and co-founder of Landbay, commented: “Despite political and economic turmoil, the British property market has remained resilient. Rents are growing at a steady pace, and that growth is not restricted to specific regions or rental brackets.
“Meanwhile, house prices in England fell for the first time in seven years in the first three months of 2019. This combination is good news for first-time buyers and landlords alike. This period of uncertainty may in fact be the best time for individual certainty – do your research and see whether it’s time to take the first step onto the property ladder [or expand your portfolio].”
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