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Rents soar outside London


Rents soar outside London

Rental prices outside of London soared during 2016, new figures have revealed.

Research published by Landbay found that the average rent for UK property outside the capital hit £750 per month during December, marking a 2.04% rise over the course of last year.

Rental payments now account for 53% of the average take-home pay for people living outside the capital (£1,425).

John Goodall, CEO and co-founder of Landbay, said: “Outside the capital, rents continued to grow across the country in 2016, a trend we expect to continue into the coming year.

“Demand for rented accommodation will remain robust, as the myriad threats of rising house prices, falling real incomes and rising inflation affect the ability of aspiring homeowners to get their foot on the housing ladder and save for a deposit.”

Of the regions seeing growth, Welsh rental prices saw the largest annual rise at 1.43%.

Prices in Wales now average £634 per month.

Scotland saw a similar increase, with average monthly rent payments climbing 1.42% to £721.

By contrast, London rental prices fell by 0.39% during 2016, reflecting an average payment of £1,882 per month.

Despite this decline in the capital, John insisted that more should be done to tackle the problem of soaring rent in the UK.

“The government may have just committed £7bn to building an additional 200,000 affordable starter homes, but supply across all tenures is still too low,” he explained.

“The buy-to-let market has become a ‘catch all’ for a forgotten generation of house hunters, for those who cannot, or choose not to, buy a property outright.

“All eyes will now be on the upcoming housing white paper, which may be the best opportunity we’ve had in recent years for significant change.”




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