York has UK’s highest rental growth, claims CBRE ‘British Living’ report

CBRE has released the results of its ‘British Living: A town and city compendium’, which reveals the local trends and buyer characteristics across 29 of Great Britain’s towns and cities.

According to the real estate services and investment giant’s residential outlook for some of the UK’s most well-known locations, over 80% of Britain’s 64 million population lives in an urban location.

Following on from the impact of a global financial crisis, many regions are now flourishing, and this report published by CBRE highlights how cities such as York have witnessed a significant 26% average rental growth during the last 12 months alone in comparison with the nation’s 4% and the region’s 2%.

Mike Gorman, senior director at CBRE Leeds, said: “This recent report really demonstrates the growth in the residential market in the North of England, in particular York which remains a popular place to live due to its rich ancient history and attractive villages. House prices in York increased by 3% last year and now stand at an average £228,907. This is 44% higher than the regional average, and reflects a buoyant local economy with just 5% unemployment and above average earnings of £35,177. The underlying demand created by this demographic as well as young professionals has pushed rents up an astonishing 26% last year to stand at £901 pcm.”

However, York isn’t the only Yorkshire city that has seen rapid developments in recent years.

While speaking about Leeds and Sheffield, Mr Gorman added: “With its thriving economy and distinctive skyline, Leeds is fast blossoming into a hub of commercial and creative activity. Over the last 20 years, more jobs have been created in Leeds than any other regional city. 29 schemes have been granted planning permission in the last two years and there are currently a range of sites changing hands in the market at rates of above £1.5m an acre. With a 5% increase in population over the next five years (in comparison with the region’s 2%) and above average rental growth over the last year alone (5%), Leeds is certainly on the up.”

The report also showcases Sheffield which, being made up of 61% green space and two million trees, is England’s greenest city. Over the past two years, 28 schemes have been granted consent and significant rejuvenation plans for the heart of the city have been revealed – including a £140 million retail quarter.

With 7% average rental growth over the last year (in comparison with the nation’s 4% and the region’s 2%) and relatively affordable housing, Sheffield offers opportunities for investors and first time buyers alike.

Jennet Siebrits, Head of Residential Research at CBRE, also commented: “As major infrastructure improvements take place across the United Kingdom, the Government’s vision of connecting Britain’s towns and cities is already showing fruition. However, our research does highlight the need to build more homes, as the supply and demand imbalance remains more significant than ever.

“Accounting for nearly 20% of the British population, the North of England has witnessed the most residential led schemes which have been granted planning during the last 2 years. While 492 housing developments is a positive step forward, it is key to continue momentum as cities such as Manchester cement themselves as fast growing economies which continue to attract international investment.

“CBRE also demonstrates how many of the UK’s more established university cities are enjoying an increase in average house growth and continued high rental demand.”

The British Living report uses a variety of metrics and insight into local housing markets across the British Isles and thereby provides a unique opportunity to digest the latest insight in the form of a snapshot for each location.

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