Landlords Enjoy 'Greater Rewards' In The North
Landlords who are looking to enjoy greater rewards from their investment should look north of London, one index reveals.
The findings from Landbay Rental Index highlights that rent increases in London have slowed to a crawl with an average rise of 0.66% recorded in April.
However, in Scotland, the rents in Edinburgh grew by 5.4% and in Glasgow by 2.6%. Across Scotland, average rent growth over the year was 1.74%.
The firm's chief executive, John Goodall, said: "Landlords can be reassured there is rental growth across the UK, particularly if looking north of London.
'Landlords have had a difficult time'
"Landlords have, on the face of it, had a difficult time in recent years from increasing stamp duty costs and regulatory pressures and yet many have shouldered many of these costs without passing them onto tenants."
Rents in Wales recorded the second highest growth in April, with rises of 1.6%, with an average rent of £658.
Highest rate of rent growth in England was for landlords in Nottingham with rises of 3.84%.
Rents grew by 1.24% in the South West and the best rent rises for London were in Islington at 1.64%.
Rents in the capital are now an average of £1,906 per month, which compares with the nationwide UK average of £1,218.
Excluding London, the average rent is £773 and in Scotland it is £750.
Landlords warned to expect tenant activity
Meanwhile, with the introduction of the Tenants Fees Ban starting from 1 June, one organisation is warning landlords and letting agents to prepare for increasing tenant activity.
Inventory service provider, No Letting Go says lots of tenants will look to move in June so they can avoid paying upfront fees and then benefit from the cap on security deposits.
The warning coincides with research published by the Deposit Protection Service that points to tenants delaying their moves between rental homes until the Tenant Fees Act becomes law.
'Tenants are delaying a move'
The founder of No Letting Go, Nick Lyons, said: "It's no surprise that tenants are delaying a move until after the fees ban is introduced. The upfront cost of moving between rental properties can be high, particularly in the South East and London, so tenants will do anything to keep costs down, even if it means putting a move on hold for months."
The firm says there will be a 'significant uplift' in tenant activity from June.