The UK’s decision to leave the European Union has had a well documented effect on the housing market, with most areas of the country seeing a stagnation or decrease in house prices. Rental prices, however, has experienced the opposite effect, with the latest data suggesting that most regions, apart from London, have seen rental price hikes.
Nottingham has seen the highest rent increases since 2016; prices in this city have soared by 24.5 per cent since then. The northern cities of Manchester and Newcastle are not far behind, with rents now 18.9 per cent and 17.7 per cent higher respectively. Bournemouth, Leicester, Leeds, and Bristol have all seen rental price hikes of between 12 and 15 per cent.
London hasn’t experienced anything like this level of rent increases since the referendum, with only the borough of Havering having seen rental prices grow by 10.5 per cent. Rents are still increasing in the capital, but at a much slower rate (about 5 per cent) than in the rest of the country.
Jonathan Senior, founder of VeriSmart, who compiled the data, comments, ‘While Brexit has brought subdued buyer demand, a fall in transactions and a top line slow in the rate of price growth, there are a number of areas in the rental market that have seen accelerated rental growth since the vote.
‘Although it is predicted that there will be a mass migration of EU nationals from the UK in the wake of our European exit, high house prices, low stock levels and a fairly stagnant level of wage growth means that even on a domestic level we are very reliant on the rental market to put a roof over our heads.
‘As a result, and even with the wider landscape considered, there are still plenty of opportunities out there for those looking to invest in bricks and mortar.’
BY ANNA COTTRELL
Source: Real Homes