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Northern city rental growth outpaces London: Landbay

A survey conducted by Landbay outlines substantial rental growth in Leeds of 2.54 per cent, 2.05 per cent in Birmingham and in Manchester, 1.91 per cent.

Nationwide, rents rose by 0.97 per cent in the last year, 0.04 per cent higher than the same point in 2017.

However, London’s 2018 rental growth stands at 0.58 per cent – 0.39 per cent lower than the national average.

The average monthly UK rent currently sits at £1,212, a rise of £10 since the start of the year, while removing London from the picture shows rents at £769, up from £761 at the beginning of 2018.

The survey outlines that the UK’s regional hubs are experiencing an increase in rental growth due to workers relocating from London amid rising livings costs and investment in other cities.

MediaCityUK now employs more than 3,000 people at its base in Salford, after welcoming 2,300 BBC employees back in 2010. Salford has seen rents rise by 2.62 per cent year-on-year and 22.76 per cent cumulatively since January 2012, more than double London’s pace 9 per cent.

Recently HSBC has announced it will move 1,000 jobs to Birmingham, while Leeds has seen jobs created by companies including Burberry.

Landbay chief executive and co-founder John Goodall says: “It’s hard to escape the fact that we’ve seen a slowdown in the property market due to Brexit uncertainty and recent tax and regulatory changes for landlords.

“The truth is there is now a twin speed rental market as London’s rent growth is dwarfed by cities such as Leeds and Manchester.

“This is being fuelled by the capital’s millennial exodus as countless young professionals realise there is more to life than London. This same message carries weight with landlords, who are increasingly seeing the value of investing in these regional hubs.”

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