Rental growth for property in the UK has increased by 0.96% in the year to April, according to the latest Landbay Rental Index. However, slow rents in London (0.66%) continue to weigh down on otherwise resilient rental growth in the rest of the UK (1.11%).
Landlords, this could be a prime opportunity for investment, if you have your eye on higher rental growth. Looking north of London, or even England, could reap rewards.
The highest year-on-year rental growth can be seen in Scotland, at 1.78%. Here, the average rent is £750, which is only slightly less than the UK’s average, when discounting London (£773).
In particular, Edinburgh City has the highest rental growth, at 5.44% year-on-year. Glasgow City and East Lothian are also doing well, at 2.59% and 2.21% respectively.
Heading over to Wales, results show the country to have experienced the second highest growth. However, rents are lower at an average of £658. The second highest rental growth in the UK is in Methyr Tydfil at 4.65%, whilst Blaenau Gwent is third at 3.92%.
In England, Nottingham has the highest rate of rental growth at 3.84%. Rutland and Leicester are also good options for landlords looking to move further north from London, with growth at 2.56% and 2.33% respectively.
John Goodall, CEO and co-founder of Landbay said: “Landlords can rest assured that there is decent rental growth to be found across the UK, particularly if they look north of London. On the face of it, landlords have had a tough time in the past few 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. For brokers, this provides them with the opportunity to give expert advice to their clients about changing elements of the housing market and which areas have the most potential in the coming months.”