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Edinburgh and Nottingham see largest annual rental growth: Landbay

Edinburgh and Nottingham experienced the largest annual rental growth in the UK in 2018, according to Landbay’s national rent review.

Edinburgh saw rent rises of 4.63 per cent, while Nottingham increasing by 4.62 per cent; the average rents for the former are at £1,073 and for the latter at £688.

In contrast, Aberdeenshire has seen the largest decline at 7 per cent with rents on average at £1,360, followed by Aberdeen City which has decreased by 6.23 per cent and rents currently standing at £580.

Nationwide rents across the UK have rose by 0.97 per cent, meaning both Edinburgh and Nottingham are growing more than four times faster than the national average.

Six London boroughs have seen declining rents this year including Barnet, Brent, Enfield, Harrow, Kensington and Chelsea and Hillingdon, although London on average has seen a rise of 0.58 per cent.

Across the UK 13 different areas have seen rents rise faster than the CPI measure of inflation, which currently stands at 2.3 per cent.

Data from the review highlights that one-bed rents have grown 1.07 per cent, which is faster than two-beds at 1.02 per cent and three-beds at 0.98 per cent.

The average rent for a one-bed now stands at £1,031, two-bed at £1,173, and three-bed at £1,347 in 2018.

Landbay chief executive and co-founder John Goodall says: “A number of factors are creating demand for smaller properties. A shortage of new smaller properties entering the wider market as well as higher tax burden on larger homes has put upwards pressure on rents for one and two bed properties as professional landlords seek sustainable yields.

“There is no doubt that the private rental sector has seen a geographically varied performance throughout 2018.

“The scale of declining rents in Aberdeenshire and Aberdeen may appear concerning, however the reality is that these are exceptions, linked to issues surrounding Scotland’s oil industry.

“In the context of Brexit uncertainty and recent tax and regulatory changes for landlords, these figures show just how resilient the market continues to be.”

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