AUGUST 06, 2018 | BY A & S Property
Top 10 buy-to-let hotspots unveiled

Buy-to-let has recently taken a bit of a bashing with some landlords forced to exit the market as profits drop amid a tax squeeze - but it is still possible to make a healthy return from the PRS. 

Landbay has identified the top 10 best performing local authorities for rental growth on an annual basis, with Monmouthshire in Wales leading the pack with rental growth at 3.22%.

This is followed by Nottingham (2.87%) and Conwy (2.71%) in third.

Four of the ten best performing areas are in Wales, while Scotland and England both have three apiece.

Landbay has also mapped the top 10 worst performing areas, with Aberdeen City and Aberdeenshire named as he the two worst performing spots.

Both areas were heavily hit as the local economy was impacted by the drop-in oil price in 2014, but the area is showing signs of a recovery.

England has seven of the worst performing areas.

Top 10 areas by annual percentage change

Worst 10 areas by annual percentage change

Rank

Country

Area

%

Rank

Country

Area

%

1

Wales

Monmouthshire

3.22%

1

Scotland

Aberdeen City

-4.44%

2

England

Nottingham

2.87%

2

Scotland

Aberdeenshire

-4.30%

3

Wales

Conwy

2.71%

3

England

Windsor and Maidenhead

-1.19%

4

Scotland

Stirling

2.68%

4

England

Luton

-1.07%

5

Wales

Blaenau Gwent

2.61%

5

England

Halton

-1.06%

6

Wales

Carmarthenshire

2.60%

6

England

Kensington and Chelsea

-0.93%

7

Scotland

Inverclyde

2.59%

7

England

Hartlepool

-0.85%

8

Scotland

Edinburgh City

2.58%

8

England

Brent

-0.76%

9

England

Northamptonshire

2.51%

9

England

Kingston upon Thames

-0.50%

10

England

Bristol

2.42%

10

Scotland

Angus

-0.39%

 

Overall, rental prices in the UK are currently increasing at the slowest pace for five years according to the latest Landbay Rental Index.

The data, powered by MIAC, has revealed that rents in the UK, excluding London, increased by just 1.18% in the 12 months to July 2018.

Despite rental growth across the UK being in positive territory there is a synchronised slowdown taking place.

In England, excluding London, the level of growth remained at 1.18% - its lowest point since April 2013. With the capital included the pace of growth slows to 0.81%.

But the capital return in London has returned to positive territory over the past couple of months, with the first annual rental increase in 18 months happening in June.

Rental growth in Scotland has hit a record low at 0.98% year-on-year. A similar picture can be seen in Wales, where rental growth reached its lowest level since June 2015.

However, with rental growth at 1.6% this remains higher than the Welsh average growth rate of 1.49%.

John Goodall, CEO and co-founder of Landbay said: “Rental growth across the UK is stuttering. However, there are signs of a recovering market in London and stronger demand for rental properties.

“On the face of it, landlords have had a tough time in the past two years from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs without passing them onto tenants.”

UK Rental Index by country (all beds)

July 2018

YoY

MoM

Av. £

UK

0.84%

0.08%

1,206

UK exc. London

1.18%

0.11%

    765

England

0.81%

0.09%

1,237

England exc. London

1.18%

0.12%

    771

Scotland

0.98%

0.01%

    734

Wales

1.60%

0.10%

    651

London

0.20%

0.03%

1,887

Northern Ireland

1.45%

-0.21%

    573

 

UK Rental Index by region (all beds)

 

July 2018

YoY

MoM

Av. £

East England

1.46%

0.13%

    916

East Midlands

2.00%

0.13%

    630

London

0.20%

0.03%

1,887

North East

0.14%

0.08%

    552

North West

0.97%

0.13%

    622

South East

0.85%

0.11%

1,059

South West

1.43%

0.13%

    753

West Midlands

1.42%

0.12%

    690

Yorkshire and Humberside

1.37%

0.14%

    581

 


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