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Rightmove: The North Led Rental Growth in 2016

Asking rents across the UK, excluding London, rose by 3.0% in 2016, with northern regions recording higher rises as the year ended, says Rightmove.

Asking rents across the UK, excluding London, rose by 3.0% in 2016, with northern regions recording higher rises as the year ended, says Rightmove.

The top performing areas were Yorkshire and the Humber, where rents increased by 4.4% in 2016, and the North West, with asking rents up 4.4%.


These regions overtook the East of England in 2016, which experienced the quickest growth throughout the year until the last quarter.


In the capital, an increase in the supply of rental stock resulted in an ease of rental costs in 2016, said the firm; rents in inner London dropped by 5.2%, whilst the outer London area saw a modest decline of 2.5%.


Scattered across the UK were the top five best performing regions; Swansea tops the list, reporting an 11.4% year-on-year rental increase, followed by Gillingham and Bath, where asking rents rose 11.1% and 10.5% over the year, respectively.


Looking ahead, Rightmove forecast a buoyant 2017 for the property market, as rents are expected to rise by 4.0%, potentially surpassing 2016 & 2015’s pace of rental growth of 3.0% and 3.7%.


On a final note to those looking to invest in 2017, Sam Mitchell, head of lettings at Rightmove, said:


“Investors looking for the strongest yields could consider investing in certain areas in the north west of England where both demand and yields are high. Those with a number of properties in the capital may find that tenants are more price sensitive, so setting realistic rent levels will be the key to avoiding void periods. In order to mitigate this, we would recommend landlords asking for longer tenancies to help secure a steady rental income over the next few years while they adjust to what the tax changes will mean for them”


Earlier this week, research by tenant referencing company HomeLet also revealed that rents across the North of the UK outperformed the South in December 2016.

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