According to Zoopla, London is leading the slowdown in rental growth. The rate of rental inflation in the capital was 3.7%, down from over 13% this time last year.
Last year’s record-breaking rental increases were not sustainable, so it’s no surprise that the average rental growth has slowed across the country. At a city level, there are even some modest falls in average rents in a small number of cities such as London (-0.3%) and Cambridge (-0.3%).
However, many regions, especially those in the North, are still recording high annual rental increases. North West rents have risen by 8.4% on average, with major cities like Manchester (8.1%) and Liverpool (7.9%) following the trend of substantial rental growth year-on-year. For this reason, many investors are avoiding London property investment and looking towards northern regions.
In fact, the average rental growth for the UK when London is excluded is at 8%, significantly higher than the overall UK average.
Further Reading: Find out more about investment strategies such as buy-to-let houses for sale and luxury property investment.