10:56 AM, 20th August 2015, About 6 years ago 1
Regional cities experiencing private rental growth, reveals new analysis. The UK private rented sector is continuing to grow, with activity increasingly collecting in cities around the country, according to new data.
The proportion of those in the private rented sector living in urban areas has risen to 86% over the last decade, from 80%, mostly accounted for by regional cities outside London.
This growth is predicted to continue, reveals analysis of the English Housing Survey by Knight Frank.
Affordability restraints combined with increasing hurdles in the mortgage market have caused demand for rental property to increase. In addition, there is a growing desire for property with flexible tenure, particularly from young professionals who want to live closer to their places of work.
A spokesperson for Property 118’s landlord insurance providers Discount Insurance says: “Tenants are looking for greater flexibility as they want to be able to live closer to work, but also do not want to be tied down to one location or property. This would be one explanation to the rise in private rental growth in regional cities.”
Rents have been rising across the country, reflecting an increase in wages and inflation. Rents had risen by 2.5% in the year to the end of June.
In the 12 months to the end of June, the following increases in rents were seen:
Greater London 3.8%
East of England 2.6%
South East 2.5%
South West 1.8%
Yorkshire and Humber 1.4%
North East 0.5%
The data shows the large disparities between rent increases in different regions across the UK. Tenants are also now staying longer in their homes with the proportion of those living in rented accommodation reporting that they have lived in their current home for between two and four years rising from 20% a decade ago to 24% today.
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