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Rental Growth in Southern Regions Outshined by a Rising North Once More

A new rental index has revealed that rents across regions in the North of the UK grew at a faster rate than in the South over the course of December.

A new rental index has revealed that rents across regions in the North of the UK grew at a faster rate than in the South over the course of December.

Analysing the UK’s private rented sector, tenant referencing firm HomeLet found that rents grew most quickly in Northern Ireland, the North East & Scotland, rising by 6.4%, 4.9% and 3.8% respectively.


Comparatively, the Greater London region, the South East and the South West experienced more modest growth of 2.0%, 1.7% and 1.6% - significantly lower than in the North.


Greater London, in particular, experienced much slower annual rental growth following the Referendum in July last year when compared to 2015. However, rental values in the capital remain significantly higher than the rest of the UK, with average rents in December standing 69% above the UK average at £1,508 pcm.


The southern regions, which saw rental inflation rise considerably in the first half of 2016, experienced a ‘more marked pull-back in the second six months’ said HomeLet in a separate press release, indicating that rents in these areas could be facing an affordability ceiling.


HomeLet’s findings are echoed by earlier research from property investment platform Landbay, which showed that rents grew the fastest in the Midlands & North across the last 5 years.

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