Rents in East Midlands rising three times faster than UK average

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  • 08/03/2018
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Rents in East Midlands rising three times faster than UK average
The East Midlands has seen the strongest pace in rental growth in the UK for the 12 months to February 2018, according to the latest Landbay Rental Index.

 

Rents in the UK grew by an average 0.69% year-on-year in February 2018 to £1,199 per month.

The East Midlands, however, saw rents rising by 2.24% across the same period – more than three times the UK average.

Leicester and Nottingham led rental growth in the East Midlands with 3.42% and 3.30% respectively.

Rental growth in the East of England came in second behind the East Midlands with 1.58%.

Within the region, Peterborough posted 2.99% growth, followed by Cambridgeshire at 2.24%.

However, Luton rents fell by -0.13%, after being among the fastest growing counties at this point last year with 4.83%.

Nevertheless, rental prices remain more affordable in the East Midlands, which stood at £626 per month despite the high growth.

By contrast, the East of England had an average £910 monthly rent, against £1,878 in London and £1,053 in the South East.

On average, UK rents stood at £761.

 

The buy-to-let attraction

John Goodall (pictured), chief executive officer and founder of Landbay said: “Much like Britain’s weather, rental growth was heavily impacted by the East in February.

“With its more affordable rents, the East is seemingly becoming an increasingly attractive buy-to-let region and as a result greater competition is driving up rents.

“Landlords hoping to capitalise on high demand in the East should pay close attention to the number of bedrooms in the property before making their purchase. Demand for two-bed homes appears to be severely lagging other sizes.”

Indeed, the Landbay data showed that rental growth varied significantly depending on the property type, with one- and three-bed properties in Leicester growing by 4.03% and 5.01% respectively, but two-bed properties growing 1.41%.

Goodall continued: “At a national level, an uplift in rents has been on the cards for a while and is likely to continue into 2018.

“The prime minister has this week vowed to get tough with property developers who sit on planning permissions, but if we truly want to control rental and house price growth we need to build more homes, not just plan them.

“Areas in the East Midlands and East of England, such as Leicester and Nottingham, where rental growth is reaching particularly unsustainable levels, should be the prioritised focus for the government, developers and landlords.”

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