Rental Demand: Top Renter Locations In The UK
Rents have been rising across the country at unprecedented rates. The average rent increase in the country is 5.9% during the year. Yet, at the same time, there are some areas where the growth has been almost double that. But, of course, there are more factors to consider when choosing a rental location than just the recent change in prices. So let’s take a look at some of the top renter locations in the UK.
The fastest growth in rental prices has been seen in the south west. In one year prices have risen an eye-popping 11.3%. As it stands, that makes the area very attractive for anyone looking to start or expand their rental business.
In the south east, there has also been a significant increase in rental prices. On average, prices are up by 10.4%. Notably, this is the figure for outside of London. The picture in the city is very different. It marks a change in the status quo in terms of rental prices.
Traditionally London has been the market leader for not only rental prices but growth as well. However, the exodus from the city has resulted in a comparative glut of rental properties that are not being seen anywhere else in the country.
You can find some of the best rental yields in Yorkshire at the moment. For example, Hull has a short term rental yield of 9.2%, while Barnsley and Doncaster both offer 7.9%. But, of course, there are places in Yorkshire where the returns are much lower. Wakefield, for instance, has one of the lower average monthly rental rates in the UK.
What’s Driving The Increase?
There just aren’t enough rental properties on the market to meet demand. There are around 45% fewer homes available to let than the same time two years ago. The areas of the country with the highest prices are the ones with the most demand. Estate agents report that they are inundated with queries within hours of posting a new property for let.
Places To Avoid
Interestingly Wales appears to be suffering a little in terms of attracting landlords. While rental prices have gone up, so have property prices. This means that the rental return is lower than in other locations. This is especially true in Newport and Swansea. Of the Welsh cities, Cardiff has held up the best with reasonable short term yields of 5.6%
Getting Into Buy To Let
If you are interested in getting into the buy to let game, this is a great time. The stamp duty holiday may allow you to get a property at a lower total price, and the significant demand means it should be easy to get tenants lined up.
If you intend to put a property onto the rental market, you need to make sure you have all your documents in order. Assessment Hive can help you with that. We can perform all the assessments you need to get started such as EPCs, SAP Calculations and more.