HomeLet names its rental market hotspots of 2015
Posted 12 January 2016 by Keith Osborne
Specialist insurance provider HomeLet, part of the Barbon Insurance Group, has released its latest research based on its regular Rental Index, which has revealed the top rental market hotspots of 2015.
The firm’s annual review of the rental market shows that, based on rents on new tenancies signed last year, Brighton and Bristol topped the table, with , on average, an 18% rise on new tenancies last year compared with those agreed in 2014. In Edinburgh and Newcastle-upon-Tyne, rents were up by 16%, with Greater London and Liverpool behind them with increases of 11% year-on-year.
With under three months until a stamp duty surcharge of 3% is levied on buy-to-let and second homes, many industry experts are predicting a surge in property sales as would-be landlords snap up investment homes under the current stamp duty rate.
Martin Totty, Barbon Insurance Group’s chief executive officer, says: “2015 was a year in which rents on new tenancies were up on 2014 in almost every area of the country. While we saw a moderation in the rate at which rents increased during the final months of the year, and even some falls in a number of regions, the sector overall has continued to see strong demand.”
“Beneath the headline figures, HomeLet’s data points to some significant variations in rental market performance in 2014, both from region to region and from town to town. In locations such as Brighton and Bristol, demand for rental property appears to have been particularly strong and rents on new tenancies jumped very markedly. In other areas, we saw slower growth.”
Here’s HomeLet’s Top rental market hotspots (based on average rents in 2015 and 2014 on new tenancies) and some current new-build developments in these hotspots which could make an excellent buy-to-let purchase:
|City/town||Ave. new tenancy rent 2015||Ave. new tenancy rent 2014||% rise year-on-year||Example new homes development|
|Brighton||£1,078||£913||18%||Port Hall Mews, from £399,950 (Mishon Mackay)|
|Bristol||£904||£767||18%||Stanley Park, from £355,995 (Redrow Homes)|
|Edinburgh||£819||£707||16%||The Kilns, from £136,500 (Barratt Homes)|
|Newcastle-upon-Tyne||£588||£506||16%||The Grove, from £106,995 (Keepmoat)|
|Greater London||£1,596||£1,435||11%||Brunswick Square, Orpington, from £295,000 (Berkeley Homes)|
|£673||£607||11%||Affinity at Church Fields, from £149,000 (Lovell)|
|Glasgow||£636||£586||9%||Almandine, from £109,000 (Ogilvie Homes)|
|Coventry||£754||£699||8%||Spirit Quarters, from £94,800 (Barratt Homes)|
|Leeds||£691||£648||7%||Trinity Hall, from £69,995 (Aspen Woolf)|
|Manchester||£727||£691||5%||Brunswick Street, from £136,371 (Experience Invest)|
|Nottingham||£586||£556||5%||Woodhouse Park, from £174,995 (David Wilson Homes)|
|Belfast||£606||£579||5%||Bracken Hill, from £195,500 (McGinnis Group)|