York rents are rising faster than in almost any other city.
New research has found that rents are increasing nearly twice as fast as a year ago. Across the UK, the average monthly rent in the final quarter of 2019 was £886 – up by 2.6% annually.
And York is one of only three cities to see rents increase by 5% or more annually. York is third in the league table with a 5.0% rise, behind Bristol (5.5%) and Nottingham (5.8%).
The relatively high cost of buying a home in York is likely to be supporting rental demand and, in turn, rental growth, Zoopla said in its annual survey.
Fewer homes for rent
Rent rises by city
Nottingham, £679, 5.8%
Bristol, £983, 5.5%
York, £844, 5.0%
Leeds, £715, 4.4%
Preston, £571, 4.0%
Stoke, £520, 3.9%
Leicester, £727, 3.7%
Edinburgh, £950, 3.5%
Norwich, £765, 3.3%
Liverpool, £586, 3.2%
Photograph: Yui Mok/PA Wire
Tax changes in recent years, which have eaten into landlords’ profits, mean the supply of rental homes has dwindled. At the same time, demand from tenants has increased, pushing rental prices upwards, according to the index.
Richard Donnell, research and insight director at Zoopla, said:
New investment by landlords has fallen since the introduction of tax changes in 2016 and this has been felt most keenly in southern England where property values are highest and yields lowest.
This is creating scarcity and explains why rents are rising.
He continued: “We expect rents to increase by 3.5% over 2020 as a lack of supply supports faster growth.”