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Buy to let property investors can enjoy higher rental growth in the north according to the latest Landbay Rental Index.
The average rent for a property in the UK grew by 0.96 per cent in the year to April, as slow rental growth in London at 0.66 per cent continued to weigh down on otherwise resilient rental growth in the rest of the UK at 1.11 per cent excluding the capital.
For landlords with an eye on higher rental growth, looking north of London, or even England, may reap rewards. Scotland has the highest year-on-year rental growth at 1.78 per cent – the average rent is £750, only a little less than the UK’s average discounting London (£773).
The north is led by Edinburgh City which has the highest rental growth of any geography in the UK, with growth of 5.44 per cent year-on-year. Glasgow City also has high growth of 2.59 per cent, as does East Lothian at 2.21 per cent.
Wales has the second highest growth in terms of countries at 1.26 per cent, but has lower rents of £658 on average. Merthyr Tydfil has the second highest rental growth in the UK at 4.65 per cent, while Blaenau Gwent comes in third at 3.92 per cent. Interestingly, no Welsh region features in the thirty areas of lowest annual rental growth in the UK.
In England, Nottingham boasts the highest rate of rental growth at 3.84 per cent. Rutland and Leicester (2.56 per cent and 2.33 per cent respectively) are additional reasons for landlords to consider widening their search north of London in the hunt for above average growth. In fact, the East Midlands has a higher growth rate as a region (1.98 per cent) than Scotland.
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.’
He continued: ‘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.’