London rental growth at three-year high
Annual rental growth in London reached 2.8% in Q4 2019, the highest growth rate for three years, Zoopla’s Rental Market report shows.
In York, Bristol and Nottingham the average cost of renting has increased by more than 5%, more than double the UK average of 2.6%.
Aberdeen, Middlesbrough and Coventry were the only three cities where the cost of renting has fallen compared to last year.
Mary-Anne Bowring, managing director at Ringley, said: “Rental prices in London have increased by 2.8% – the highest rate in the capital for almost four years – and providing the Brexit deal doesn’t prove too damaging, this will likely continue.
“Zoopla’s prediction that anticipates a 3.5% growth in rental prices over 2020 is welcome news for landlords and the institutional investors eyeing the UK rental market, with recent Savills research showing there are now over 150,000 build-to-rent homes in the pipeline.”
The Office for National Statistics estimated that average rents grew by 3.8% in 2019, compared to the 2.6% cost of renting.
Bowring added: “Rental growth has largely been driven by higher wages but there are al-ready signs wage growth may be slowing. Lack of supply is also another factor, with many private landlords looking to exit the market following tax and regulatory changes.
“A drop off in available rental homes combined with reduced wage growth could leave renters out of pocket. To that end, the government should rethink its approach to buy-to-let landlords.”