RENTS increased five per cent in York last year – one of only three cities in the country where the cost of renting rose by such a high level.
The average rental figure for a property in York is now £844 a month, in comparison to the national average which is £886 per month.
The other cities where rents went up by five per cent or more were Bristol and Nottingham.
In York, the high cost of buying a home is likely to be boosting demand for rental properties, according to Zoopla.
As Scott Littlefair, Managing Director of Littlefairs Property Company, explains,“with a resilient economy, great transport links and excellent schools and universities, York offers great investment potential.
He continues: “That said, Tax changes that 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.”
On a national scale 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.”
Michael Slater, assistant director of planning at City of York Council, is reported as saying that demand to live and work in York had increased as it was a “highly desirable place”.
Across the UK the average monthly rent in the final quarter of 2019 went up by 2.6 per cent annually. This was nearly double the 1.4 per cent annual growth in private rents seen a year earlier.
It is without question that the profit margins for property investors are being squeezed by legislation and changes to the tax system but all is not lost for investors who should start to see increasing rental figures, especially in key cities, such as York.
For more questions on buying an investment property in the hotspot of York, call your local lettings experts today on 01904 393989.