Rents have been rising significantly fast in UK cities, especially in Nottingham, Leeds and Bristol, in the past year. Nottingham tenants experienced the largest increase, as figures from the property website’s, Zoopla, survey show; tenants moving into a Nottingham home paid 5.4% more in rent than the previous year.
Similarly, Leeds and Bristol were the only other UK cities whose rents were rising fastest in comparison to the UK average wage growth; with rents increasing by 4.5%. However, Aberdeen was seen to experience the biggest fall; as rents dropped by 4.1% in the third quarter of the year in comparison to the year before.
Zoopla has said that renting a UK home has become more affordable, this is part due to an increase in the number of people buying their first own home. Therefore, relieving the pressure off the rental sector.
UK-wide rental prices have rose by an average of 2% in the last year; estimated to be half of typical wage rises. Richard Donnell, of Zoopla, has commented, “Renting is more affordable today than the 10-year average. [An increase in] first-time buyers, 80% of whom exit the private renting sector to buy, has also moderated rental demand,” basing these figures on Zoopla’s listings and other data.
“Rental affordability varies widely across the country, reflecting the relative strength of local economies.”