Landlord News

Rental Growth Across England Outperforming National Average

Em Morley - July 25, 2019

Rental growth in cities across England that are undergoing extensive regeneration has now overtaken the national average.

Research from Bunk, the lettings platform, has found that the average rental price has increased by 21% during the last five years, compared to 16% across England as a whole.

This study looked into the impact of gentrification on rental prices, along with a comparison of rental growth in cities that have been through extensive regeneration to the national average.

The relocation of the BBC and regeneration of Salford Quays has resulted in Manchester seeing the most significant boost. This has resulted in rent prices rising by 38% in the last five years.

Cambridge was close behind, with rent prices up 31% since 2014. Planning consent has been given for 200 new homes on the Mill Road Depot site, which could mean this increase is set to continue.

Newcastle also saw an increase of 31%, with Bristol following on 29%. The latter has been earmarked as a gentrification hotspot, with wages up and cultural investment on the rise.

Tom Woollard, co-founder of Bunk, commented: “Regardless of your opinion on gentrification, one thing is clear. These transformations are positive in terms of the level and quality of housing stock being provided and there is certainly an appetite for these developments and for housing in areas to have seen drastic improvements.

“The silver lining for the nation’s landlords is that this maintained demand pushes up prices and these areas provide a very good return on investment in a landscape that is currently rather tough.

“So for those looking to invest, the best option is to get in early to an area that has been earmarked for regeneration but is still affordable at present, and you should see a healthy return despite the changes to the sector of late.”