The UK Landbay Rental Index for January 2017 is out and Luton (in Bedfordshire) has emerged as the top gainer with the rent increasing by 6.52 per cent annually. The average rent in Luton in January was £779.48, accounting for 68 per cent of household disposable income. This makes Luton one of the highest rental areas in the UK when compared to disposable income of households.
The other areas that figure in the top 20 areas with highest rental growth (in excess of 3 per cent) are Northamptonshire (5.05 per cent); Peterborough (4.78 per cent); Edinburgh City (4.6 per cent), Medway (4.56 per cent) and Bedfordshire (4.46 per cent).
Landbay’s analysis found out that tenants in 9 of the 20 areas are spending more than 60% of their take-home pay on paying rent. While rental growth is a serious concern for tenants, who have been kept out of the housing network because of price inflation, for investors in housing, the scenario offers an attractive proposition. For property investors, Luton is the place for investments in buy-to-let homes because of high rents.
20 key rental areas in the UK have seen the average rent paid for a residential property grow in excess of 3% over the last year