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These are 2018’s rental growth hotspots

2-minute read

These are 2018’s rental growth hotspots
Mollie Millman

Mollie Millman

8 May 2018

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The places where landlords saw the biggest increases in rents over the past year have been revealed, thanks to new figures from Landbay.

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Midlands top list for rental growth

Top of the list of hotspots is Leicester, where rents have risen by 3.02 per cent during the past year.

It is followed by Nottingham at 2.96 per cent and Northamptonshire at 2.44 per cent.

The data compiled by Landbay also included Bath and North East Somerset at 2.35 per cent, Peterborough at 2.24 per cent and Cambridgeshire at 2.21 per cent in the list of top 10.

The remaining areas on the list included Suffolk at 2.15 per cent, both Norfolk and Southend-on-sea at 2.06 per cent, and Bournemouth at 2.04 per cent.

London rents skew picture for rest of UK

By contrast, many boroughs in London have seen falling rents. The borough of Kensington and Chelsea has seen the biggest falls with a drop of 1.4 per cent.

John Goodall, chief executive of Landbay, said: “Falling rents in some parts of the country, especially expensive prime London locations, distort the picture for the rest of England where rents are continuing to grow at a steady pace.

“Wherever they’re based, landlords have had to face a significant amount of complex legislation in recent years, most of which has cost them a lot of money, so it wouldn’t be surprising if they were to dramatically hike rents later in the year to recoup their losses.”

He added: “Partnered with the fact that rental demand shows no signs of giving up, prices will continue to rise over the coming years unless the Government takes action. Without a radical house building plan for both first-time buyers and purpose-built rental properties, there is no way supply will ever be able to catch up with demand.”

How much have rents risen?

The data found that the overall rent across the whole of the country grew by 0.64 per cent in the year to April.

The falling rents in London continued to weigh down on otherwise resilient rental growth in the rest of England.

Six London boroughs feature in the UK’s bottom 10 ‘rental fallers’ during the past year, including Kensington and Chelsea (-1.40 per cent), Kingston-upon-Thames (-0.98 per cent), Hammersmith and Fulham (-0.81 per cent), Tower Hamlets (-0.79 per cent), Barnet (-0.69 per cent) and Harrow (-0.68 per cent).

The remaining four spots in the list of 10 biggest rental fallers were Hartlepool (-1.19 per cent), Luton (-1.15 per cent), Windsor and Maidenhead (-1.07 per cent) and Wokingham (-0.78 per cent).

The data found that the average rent paid for a property in England now stands at £1,323, or £768 excluding London. The lowest rent is in the North East at £552.

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