Member Article

North East rents rising at fastest rate outside of London

• Regional rents remain £50 cheaper than second most affordable area – the equivalent of a rent-free weekend every month for North East tenant.

North East rents rose at the fastest rate in England outside of London over the past three months – but are rising at a slower rate than wages.

The Office of National Statistics has this week reported a 2.7% rise in weekly earnings - the fastest rise recorded in over six years – with 5000 more North Easterners in work compared to last month.

Rents have risen by 0.5% less than salaries in the same period, up 2.2%.

Further figures from the ONS this week showed that UK house prices increased almost half as much in the year to April compared to the year in March, with an average fall in prices nationally of 1.3% in the same period.

Average rents in the North East remain the lowest in the UK – 64% lower than those in the capital, where an average monthly rent of almost £1500 is almost £500 higher than the South East, the second most expensive region.

North East rents on the other hand are £45 a month cheaper than those in Wales, the second most affordable area to rent – the equivalent of a rent-free weekend for every North East tenant.

The figures, produced by HomeLet, show rental prices rising in every part of the UK this year, with the South West rents rising fastest at 13.6% and weakest in Wales, up just 0.4%.

Property expert Ajay Jagota, founder and Chief Executive Officer of the North East’s most innovative sales and lettings business KIS, responded to the figures.

The property firm is famous for being the first letting agents in the UK to abolish deposits, replacing them with a one-of-a-kind landlord insurance policy offering guaranteed rent, deposit replacement, legal assistance and round the clock third party emergency home repairs.

He said: “With wages rising at a faster rate to rents, it’s clear that North East tenants are getting a good deal from their landlords and benefiting from some of the most affordable rents in the country - no wonder 81% of tenants in privately rented homes are happy with their homes, rent, agent and landlords.

“Not only are our rents the lowest, on an annual basis North East rents are actually amongst the slowest to rise in the UK, rising three times slower than the South West, for example, and half as quickly as Scotland.

“In fact, compared to the next most affordable area to rent, the average North East tenant lives rent-free for one weekend a month. Not only can that give them a better quality of life, it’s a great help in saving for a deposit for a place of their own when the time comes.

“Right now, that could be crucial for first time buyers – it’s striking what a good time it is to buy a property – historically very low interest rates at the same time as slowing house prices, low inflation, rising employment and rising wages.

“In fact, conditions are near perfect, and that can’t and won’t last forever.”

This was posted in Bdaily's Members' News section by Ajay Jagota .