North East rent rise “largest in UK”

Rents in North East homes bucked the national trend with a 1.4% rise in October – as almost everywhere else in the country experienced a slump.

Figures from the Homelet Index show North East rents rising at a faster rate than anywhere else in the UK, with an average monthly cost of £515.

Northern Ireland was the only other region in the country to record a rise, with prices down 6.8% in Scotland, 6.2% in Wales, 4% in London and 4.6% across the UK.

North East rents do, however, remain 2.7% lower than this time last year.

Ajay Jagota of North East-based property business KIS Lettings, who manage properties for over 700 landlords from branches in Sunderland, North Shields, South Shields and Welwyn Garden City, believes the figures are a positive sign for the region.

He said: “This data could be good economic news for the North East - in fact it’s probably the first time in history the North-South divide has been in our favour.

“Rents rise when demand for properties goes up – so this could be a sign of people returning to the region for work, increased investment in the North East and increasing economic confidence in businesses and households alike.

“Obviously rent rises might sound like a bad thing to hard-pressed families, but the rate they are going up by is still well below inflation and is roughly in line with wage rises – and is still well down on this time last year.

“At the same time the figures show the North East to be the best place to invest in property in the UK, with low property prices, high rental yields and rising returns for investors which can only be a good thing for landlords, the people who supply them with goods and services, and the regional economy overall.

“More investment by landlords means more and better housing, and more competition should drive up housing standards and keep prices affordable. In other parts of the country, where property prices look unsustainable and are pricing a lot of people out of the market, and where rents are as much as three times as expensive as they are here, this just isn’t the case.

“Just this once it’s nice to see the North East doing well, and the rest of the UK losing out.”