Rent increases holding firm in some regions

Rents in the UK’s regional hubs are growing significantly faster than both London and the UK average, as workers continue to relocate from London.

Rents rose by 0.03% in November 2018 which, although the lowest monthly rise since the start of the study, feeds into growth of 0.97% in the year; 0.04% higher than the same point in 2017. This is mostly down to London’s improved performance, recording growth of 0.58% this year.

These growth figures show just how resilient property continues to be as an asset class. As with all investments, it is prudent to have a diversified portfolio.

The average monthly UK rent currently sits at £1,212, a rise of £10 since the start of 2018. When London is removed, rents sit at £769, up from £761 since the beginning of 2018. Rents are rising in 27 of the 33 London boroughs, a very different picture from this time in 2017 when rents were falling in 26 of the capital’s boroughs. While every region in the UK has seen rents rising, the speed of growth has not been consistent – with all areas other than London experiencing a slowdown.

The East Midlands (2.25%), Yorkshire & Humber (1.50%) and West Midlands (1.48%) have all experienced the most substantial growth in the past year and are expected to climb further as we head into 2019. Growth in the North East peaked to its highest point in two years in November 2017 but since then growth has depreciated to 0.05% on an annual basis – it’s lowest growth rate since August 2013. While London’s rental growth stands at 0.58% year-on-year, it is now cities like Leeds (2.54%), Birmingham (2.05%) and Manchester (1.91%) which are experiencing accelerated annual growth.

If you are looking for a new or re-mortgage please do make contact and one of our qualified advisers will be happy to assist.