Monthly rates in 20 regions increased by more than 3% over the last 12 months – but investors are warned that the UK capital isn’t showing similar growth.
- Residential property rents in the UK have risen significantly over the last year
- 20 areas of the country saw monthly rates increase by 3% or more
- But property in London has not shown similar levels of growth, with average rents in the capital down year-on-year
Should UK property investors looking for the best yields look outside of the country’s capital city?
New data shows that average rental rates have grown across much of the country over the last 12 months, except in London.
According to the latest figures from the Landbay rental index, residential rates in 20 areas of Britain have seen monthly rates increase by 3% or more in the last 12 months. With a rise of 6.5%, rents in Luton have surged the most in the UK over the last year, followed by Northampton (5.1%) and Peterborough (4.8%).
Greater Manchester, the region which encompasses Manchester, the city with the highest yields from property investment in the country, also saw strong rental growth at 3.06%.
Average UK rents as a whole are up 1.08% year-on-year. But in London, the average rent has fallen by 0.42% over this time last year.
These figures come just days after the government released its Housing Whitepaper, which had a strong focus on ensuring enough quality rental properties are built to accommodate Britain’s rising rental population.
John Goodall, Chief Executive of Landbay, believes the rental sector needs further investment to ensure it can meet the demands of today’s tenants.
He said: “There are currently 4.3 million tenants in the private rented sector, but affordability is becoming an issue across many parts of the UK. Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, people rely on a well-served market to ensure rental growth doesn’t become unbearable.”