According to buy-to-let lender Landbay, the UK’s annual rental growth is highest in Edinburgh, with the average rent at £1,073, an increase of 4.63% in 2018. Landbay’s national review confirmed that Nottingham closely followed Scotland’s capital with rent rising by 4.62% (£688) in the past year.
Stirling took third place with an annual rental rise of 3.36% to £796, Leicester just behind with a 3.16% increase to £662, and Inverclyde up 2.93% to £539.
Across the UK, the average rent rose by 0.97%, meaning that Edinburgh’s rent is growing more than four times faster than the national average.
Declining Rent in Scotland
While Edinburgh experienced the most substantial rental growth in the UK, rent has been falling in 20 different areas, with many being located in Scotland. Aberdeenshire recorded the most significant decline in the UK at 7% (£1,360). This was followed by Aberdeen City which was down 6.23% (£580), Angus down 1.75% (£444), and Moray down 1.26% (£172). Six London boroughs also saw a decline in rent during 2018; Barnet, Brent, Chelsea, Enfield, Harrow, Hillingdon, and Kensington.
John Goodall, Landbay chief executive officer, explained why he believed Scotland held the biggest fall in rent growth in the UK:
“On the face of it the scale of declining rents in Aberdeenshire and Aberdeen may appear concerning, however the reality is these are exceptions, linked to issues surrounding Scotland’s oil industry.”
Rent Review by Number of Rooms
The statistics highlighted that one-bed rentals have grown by 1.07%, two beds at 1.02% and three bedroom properties at 0.98%. During 2018, the average rent for a one-bed now stands at £1,031, two-bed at £1,173, and a three-bed at £1,347. Goodall believes this is due to a shortage of small properties as well as the higher tax burden due on larger homes.
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