Regional rental markets continue to enjoy high growth as they compete with London in setting high levels of demand.
A recent report by a market intelligence survey has shown that demand for property in the UK rental market continues to show high growth outside of London. Demand for property outside of London has increased by 5% in the second quarter of 2015, based on the amount of people seeking new tenancies at letting agents in Q2. It seems that London is no longer the leader of the pack in the UK property market, as we see the continued rise of the regional rental market.
Even though the two leading ‘hotspots’ remain in the London region, many of the other ‘hotspots’ are in a wide variety of regions across the UK. Property in Bristol remains in high demand at 71% (this figure means that 71% of the properties registered for sale in the period were successfully sold). Bristol sees itself continuing a boom as a regional rental market, a boom which began in 2014, due to its ‘high employment rates, excellent quality of life, and rapidly growing strengths in a range of sectors’, as according to a Bristol based estate agent.
Another ‘regional rental market hotspot’ appears to be the city of Reading, with 68% demand for property in Q2 2015. Demand in this region can be attributed to the Crossrail high-speed rail link project, which has been confirmed by the government to have been extended to the city. This had led to predictions for property increases in the city of as much as 43% by the end of 2020. With this in mind, properties in Reading will continue to increase in price, at the detriment to local first-time buyers, where the average house now costs nine times more than a person’s average salary.
Cambridge follows Reading in being a ‘hotspot’ of the regional rental market, with demand in the city at 67%. Even with recent claims that the property market is slowing in the region, it still shows evidence of high demand. Sales have slowed in the region when compared to the past few years but house prices continue to increase nonetheless, due to continued lack of supply in regard to new housing.
Medway sees demand at 64%. The Kentish town has seen a housing boom since 2013, and the trend continues to occur. This represents a trend of City dwellers taking flight to a suburban lifestyle in order to get more property for their money, with the downside of having to commute into the City.
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