Edinburgh was revealed as the UK city with the fastest-growing rents in 2018, as the average rent rose by 4.63 per cent this year, pushing the average rent price of a property to £1,073, according to recent data from buy-to-let lender Landbay.
Coming in behind Edinburgh, Nottingham took second place as rents have increased by 4.62 per cent to reach an average rent price of £688 in the past year. Stirling came in third place overall with a reported annual rent rise of 3.36 per cent, resulting in the average rent price increasing to £796. Leicester came fourth with an annual rent increase of 3.16 per cent to £662.
Inverclyde witnessed an annual rent increase of 2.93 per cent resulting in an average rent price of £539; Conwy saw a 2.76 per cent increase with rent prices being recorded at £609 and in York, there was an annual increase of 2.73 per cent, which put the average price to £785.
Merthyr Tydfil had an increase of 2.69 per cent as average rent prices reached £507. In Bristol, average rent prices reached £939 after a 2.58 per cent increase this year and Ceredigion saw rents increase by 2.5 per cent, which put the average rent price at £668, according to recent data from Landbay.
On the whole, average rents across the UK rose in 2018 by 0.97 per cent. The fastest-growing rents that were recorded in Edinburgh and Nottingham were four times faster when compared against the rest of the UK. There were 13 areas in the UK in total that saw the average rent increase quicker than the CPI measure of inflation that is currently at 2.3 per cent.
There were 20 UK locations which recorded a decline in the average rent price in 2018, of which, Aberdeenshire recorded the largest decline in rent price of 7.00 per cent to £1,360, closely followed by Aberdeen City, which saw a 6.23 per cent decrease which left average prices at £580.
Elsewhere, Angus saw a 1.75 per cent decrease resulting in an average rent price of £444 and the average rent price in Moray declined by 1.26 per cent to £712. South Ayrshire witnessed a 0.68 per cent rent decrease, which left prices at £464, according to recent data from Landbay.
In London, there were several boroughs that saw a decline in the average rent price this year, of which Enfield, Harrow, Kensington and Chelsea, Hillingdon, Brent and Barnet, saw an average price of £1,483 were all negatively affected. However, London as a region saw an increase of 0.58 per cent in the average rent price.
Other areas in the UK that saw a decrease in the average rent price in 2018 were Darlington, which saw a 0.46 per cent decrease in average rent price resulting in £417, Luton at 0.39 per cent, with an average rent price of £775, Buckinghamshire which decreased by 0.47 per cent to £1,166 and Bracknell Forest where prices were recorded at £942 and after a 0.37 per cent decrease, according to Landbay.
As the areas in the UK which saw a higher rate of growth in average rent prices were revealed, John Goodall, CEO and Co-founder of Landbay commented: “There is no doubt that the private rental sector has seen a geographically varied performance throughout 2018. However, 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.
“With rental growth standing at 0.97 per cent across the UK, cities like Edinburgh and Nottingham have put in an impressive shift, significantly outperforming London. On the face of it 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.”