JULY 06, 2018 | BY A & S Property
London rents rise for the first time since December 2016
Rents in London grew by 0.1% in the 12 months to June 2018, the first annual rental rise in the city since December 2016, according to the latest Landbay Rental Index.
Much has been made of slow rental growth in the capital dragging down the national average, but rental growth in the city finally returned to positive territory last month.
In the capital, the index shows rents have gone up in 25 out of the 33 boroughs over the last six months.
The average rent paid for a property in London now stands at £1,884 a month, still 2.5 times the £764pcm in the rest of the UK despite the tough market in the capital pushing rents down in recent years.
Elsewhere in the UK, rental growth continued to slow, with rents increasing by just 0.4% in the first half of the year.
Rental growth has been led by the East Midlands and East of England, where landlords have seen rental prices increase by 0.95% and 0.70% respectively.
In contrast, the North East has dragged behind with rents falling by -0.08% in H1 2018.
At a county level, Nottingham saw the fastest rental increases in H1, at 1.43% and 1.25% respectively.
John Goodall, CEO of Landbay, said: ““While there remains a huge degree of regional variation, the overall trend has been a slowing of rents across the UK in the first half of this year. However, much of this has been London weighing down heavily on otherwise resilient growth across the UK. Now that London rents have bounced back to growth this could all be about to change.
“Wherever they’re based, landlords have had to face a myriad of challenges over the past two years, with regulatory and tax changes reshaping the sector. Despite this, there has been little sign of them passing on additional costs to tenants. However, with a rate rise on the horizon, meaning a rise in the cost of borrowing for landlords, we may well start to see landlords increasing rents in the coming months to stay afloat.”
UK Rental Index by country (all beds)
UK Rental Index by region (all beds)
UK Rental Index by number of beds
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