Leicester is UK’s rental hotspot
Leicester is followed by Southall (38%) in West London and Cambridge (24%) in terms of rental growth.
Rents have reached £611 per month in Leicester, £995 in Southall and £1,001 in Cambridge.
At the other end of the spectrum Colchester (-24%), Croydon (-23%) and Brighton (-18%) have seen the biggest rental falls in 2014.
Overall UK rents increased by 6.6% in 2014.
Martin Totty, Barbon Insurance Group’s chief executive officer, said: “The demand for rental property is increasing, and we expect it to continue doing so in 2015 as large numbers of people are priced out of buying.
“As a result, we expect to see continued growth in rental prices across the UK as the New Year progresses, particularly as real incomes are starting to rise.”
“The causative factor behind these differences is as simple as supply and demand. In, locations such as Leicester and Cambridge, demand for rental property is outstripping supply.
“By contrast, Croydon and some parts of Essex are benefitting from a relative boom in new property building, easing the pressure on the local rental market and this is reflected by a drop in rental prices.”
Regionally rents in Greater London increased by 12% in 2014, followed by Scotland (9%), North East (6.2%), South West (4.8%) and South East (4.2%), while on the flipside rents decreased by 4.6% in the North West and 2.7% in East Anglia.
Totty added: “The moderation in rental prices across the UK in December 2014 is broadly in line with the typical seasonal effect that often sees rental prices slow or move into negative growth towards the end of the calendar year.
“However, the annual comparison figures show that in all but two regions of the UK, rental prices are higher now than they were this time last year and this is a trend we expect to continue in 2015.”