New research reveals the cities in the UK where rents have risen the most in the last year. According to HomeLet, Brighton and Bristol are leading rental growth in the country, with monthly rates up 18 per cent year-on-year in 2015.
The data, which we have mapped across the UK, highlights the hotspots for UK landlords seeking the best possible returns from buy-to-let investments, as regional cities enjoy the fastest growth – and, thanks to lower property prices than the capital, will often offer strong yields.
“While we saw a moderation in the rate at which rents increased during the final months of the year, and even some falls in a number of regions, the sector overall has continued to see strong demand,” comments Martin Totty, Barbon* Insurance Group’s Chief Executive Officer.
“Beneath the headline figures, HomeLet’s data points to some significant variations in rental market performance in 2014, both from region to region and from town to town. In locations such as Brighton and Bristol, demand for rental property appears to have been particularly strong and rents on new tenancies jumped very markedly. In other areas, we saw slower growth.”
Despite a slowdown in the final three months of the year, on an annual basis, the monthly HomeLet Rental Index shows that rents rose in 10 out of 12 areas, led by London, where rents on new tenancies signed during the final three months of the year were 8 per cent higher than in the same period of 2014, and the South-East (7 per cent). The North-West of England, where rents were down 5.1 per cent compared to 2014, and Northern Ireland (down 0.6 per cent) were the exceptions.
Totty adds: “We saw a narrowing of the rent inflation gap between London and the regions last year – is this a trend we will see continuing in 2016 from tenants seeking value for money in the private rented sector?”