London’s rents soar – Scotland is close behind

London’s rents soar – Scotland is close behind

0:05 AM, 15th May 2024, About A week ago 1

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London is leading the UK in rent price growth, with rents surging by an average of 11.2% over the past year, one analysis reveals.

The figures from lettings agent, Benham and Reeves, which looked at data from the Office for National Statistics (ONS), found that rents across Britain have risen by 9.1% on average.

In March, the average rent was £1,246.

London’s Brent borough saw the highest rent growth with rents rocketing by a staggering 27% to £1,940 per month.

Scotland was the only other part of Britain to see double-digit growth, with rents increasing by 10.5%.

Properties are being let a matter of hours

Marc von Grundherr, a director of the firm, said: “The allure of London is as strong as ever and that’s being seen on the ground, as properties are being let a matter of hours after being listed.

“Demand is especially fierce in Brent, Greenwich and Islington, where rental properties are commanding considerably stronger rents than they were just a year ago, which will bring some positive news to landlords despite the challenges of dealing with higher mortgage rates and energy costs.”

He added: “We’re seeing some huge increases in rents of late, some to the tune of 45%, but this high rental growth isn’t just confined to the capital.

“There’s been strong increases across every region, but especially Scotland.

“So, while some landlords may have chosen to exit the sector, the high tenant demand for rental properties has only served to make renting out properties more profitable for those sticking it out.”

Average rent in the capital rose from £1,848 to £2,055

The data shows that the average rent in the capital rose from £1,848 to £2,055 between March 2030 and March this year.

London also sees another two areas in the country’s top 10 of rent increases with Greenwich (15.8%) and Islington (14.2%).

Outside of London, Folkestone and Hythe have seen the second-largest rent rises, up by 22.5% annually.

Birmingham is seventh with a 14% increase, while Oldham (13.9%) and Ipswich (13.3%) rank ninth and tenth respectively.

However, the rest of the top 10 comprises three Scottish locations – Lothian (15.7%), West Dunbartonshire (14.4%) and Argyll and Bute (14.0%).

The agents say landlords leaving in Scotland is increasing a supply shortage to help push up rents.

That’s after the Scottish Government prohibited rent rises from September 2022 to April 2023 – after which rents were capped at 3% until March.


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Comments

Southern Boyuk

13:27 PM, 15th May 2024, About A week ago

Wrong title,

Rents rise as landlords costs dramatically increase through interest rates, inflation, and legislative conditions

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