Inner London has by far the most expensive average rent in the country, but rental growth has slowed more in the capital than anywhere else, from 17% a year ago to 9% this year. This slowdown hasn’t hit regional cities to the same extent, where renters can still afford increases based on average earnings.
A recent property forecast by Zoopla predicts rental growth in London will slow to about 2% next year, as renters cannot afford further price hikes to the already soaring costs of renting in the capital. There has been some evidence of resistance to the growing rents in London, suggesting many are being priced out of the area. Some Londoners are being drawn to commuter towns, making buy-to-let property in Plymouth, for example, more popular.
But outside of London, there will be more substantial growth of around 5-8% in 2024. The lower rent and cheaper cost of living means there is room for more rental growth in regional markets next year.
But rental growth doesn’t make up the whole story. With so many factors to consider, it’s difficult to find the best place to buy a buy-to-let.
