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Rental growth stagnates nationwide: Landbay

Annual rental growth outside of London is at its lowest point since February 2013 following a rise after the Brexit vote, according to Landbay.

In the capital average prices fell from 1.26 per cent growth in June 2016 to negative 0.31 per cent in June 2017, rising gradually to 0.67 per cent as of last month.

On a regional basis, the North East has seen the second lowest rental growth since the vote, at 0.71 per cent.

Meanwhile, the East Midlands saw the largest growth, at 6.28 per cent, followed by the West Midlands at 4.75 per cent.

Excluding London, England has seen the lowest annual growth in six years, at 1.11 per cent.

In addition, rental growth in Wales is currently its lowest since April 2014 at 1.39 per cent and Northern Ireland is at 0.54 per cent, the lowest recorded since January 2012.

In contrast, Scotland has seen its annual rents grow 1.66 per cent overall.

Scotland’s rental growth is led by Edinburgh City at 5.88 per cent, Inverclyde at 3.56 per cent and Glasgow City at 2.49 per cent.

However, the national average is pulled down by Aberdeen City recording negative 6.62 per cent growth and Aberdeenshire negative 5.42 per cent.

As of January 2019, the average rent in England excluding London is £776, followed by Scotland at £746, Wales at £656 and Northern Ireland at £573.

Landbay founder and chief executive John Goodall comments: “Falling rents in London have masked relatively strong growth in the rest of the UK since the Brexit vote, but we are now firmly in the midst of a nationwide rental growth slowdown.

“House prices continue to outpace wage growth, dampening the ability of aspiring homeowners to save for a property of their own, meaning demand for rented accommodation remains robust.

“Without a radical house building plan for both first-time buyers and purpose-built rental properties, there is no way supply will ever be able to catch up with demand.”

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