Rents eke up in February: Landbay

House-For-Rent-Home-700.jpgRents across the UK rose by 0.69 per cent, year-on-year in February, according to the latest rental index from Landbay.

However, their figures show that much of this growth was driven by rapid price rises in the Eastern regions of the country, in particular the East Midlands.

In the East Midlands prices rose by 2.24 per cent, three times the average price rise seen across the UK. In the East of England region prices rose by 1.58 per cent.

These Landbay figures show that the average monthly rent in the UK is now £1,199.

Despite stronger rental increases, the East Midlands still remains one of the most affordable regions for tenants, with an average monthly rents of just £626.

This compares to an average monthly rent of £910 in the East of England, and £1,878 in London – the most expensive rental region.

London may be the most expensive region when it comes to renting property rent, but it is also the only region to see year on year falls in rental prices according to this Landbay index. Rental prices in the capital fell by 0.39 per cent in February, and remained flat on a monthly basis.

Within the East Midlands region both Leicester and Nottingham saw some of the highest rental increases, up 3.42 and 3.3 per cent respectively. Landbay says that in these areas the size of property can affect the rental growth prospects.

In Leicester, for example the rents on one-bed properties have increased by 4.03 per cent over the last year, whereas rents on three-bed homes are up by 5.01 per cent.

In contrast there has only been a 1.41 per cent increase on rents for two-bed properties.

Landbay founder and chief executive John Goodall says: “With its more affordable rents, the East is seemingly becoming an increasingly attractive buy-to-let region, and as a result greater competition is driving up rents.

“Landlords hoping to capitalise on high demand in these regions should pay close attention to the number of bedrooms in the property before making their purchase. Demand for two-bed homes appears to be severely lagging other sizes.”

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