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Stagnant London market weighs down on national rental growth

A slow rental market in London is weighing down on growth across the rest of the UK, according to the latest Landbay Rental Index.

The data suggests the average rent for a property in the UK grew by 0.96% in the year to April, with growth of just 0.66% in the capital.

Meanwhile, the rest of the UK recorded impressive growth of 1.11% during the same period.

The highest national year-on-year rental growth was recorded in Scotland at 1.78%m with an average rent of £750. Scottish locations Edinburgh City (5.4%), Glasgow City (2.59%) and East Lothian are three of the UK's top performers when it comes to annual growth. 

Wales has also performed strongly, with national growth of 1.26% and respective growth of 4.65% and 3.92% in the towns of Merthyr Tydfil and Blaenau Gwent.

England's strongest performing area is Nottingham (3.84%), with Rutland (2.56%) and Leicester (2.33%) also recording high levels of annual rental growth.

In the South, North Somerset (2.39%) and South Gloucestershire (2.25%) have recorded impressive growth, with the South West region as a whole reporting growth of 1.24%.

According to Landbay, high rents in London continue to skew national figures. The UK average rent is currently £1,218 per month. However, this figure drops to £773 when the capital is discounted.

"Landlords can rest assured that there is decent rental growth to be found across the UK, particularly if they look north of London," says John Goodall, chief executive and co-founder of Landbay. 

"On the face of it, landlords have had a tough time in the past few years, from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs without passing them onto tenants," he says.

UK Rental Index by country (all beds)

April 19

YoY %

MoM %

Av. £

UK

0.96%

0.07%

1,218

UK without London

1.11%

0.08%

    773

England

0.91%

0.07%

1,249

England without London

1.05%

0.08%

    778

Scotland

1.78%

0.15%

    750

Wales

1.26%

0.03%

    658

Northern Ireland

0.66%

0.06%

1,906

Landbay Rental Index, powered by MIAC: Regions (All Beds)

April 19

YoY

MoM

Av. £

East England

1.05%

0.11%

    922

East Midlands

1.98%

0.10%

    642

London

0.66%

0.06%

1,906

North East

0.06%

0.04%

    553

North West

1.05%

0.05%

    628

South East

0.69%

0.04%

1,064

South West

1.24%

0.12%

    760

West Midlands

1.24%

0.05%

    697

Yorkshire and Humberside

1.34%

0.12%

    587

Annual % change (all beds) - Top 10 in the UK

Rank

Country

Region

Geography

YoY%

Av. Rent

1

Scotland

Scotland

Edinburgh City

5.44%

1,107

2

Wales

Wales

Merthyr Tydfil

4.65%

524

3

Wales

Wales

Blaenau Gwent

3.92%

402

4

England

East Midlands

Nottingham

3.84%

693

5

Scotland

Scotland

Glasgow City

2.59%

711

6

England

East Midlands

Rutland

2.56%

641

7

England

Yorkshire and Humberside

York

2.48%

790

8

England

South West

North Somerset

2.39%

681

9

England

East Midlands

Leicester

2.33%

662

10

England

South West

South Gloucestershire

2.25%

826

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