Outer city rental growth outperforms inner-city areas over the last 12 months
The recent data by Sequre Property Investment reveals rental price growth in outer city regions outpacing inner areas over the last 12 months.
The Buy-to-Let professionals at Sequre Property Investment analysed rents in London, Manchester and Birmingham.
They compared the numbers in outer and inner-city areas to identify the rental trends.
Current rental prices
The data reveal higher rents in inner-city areas than in outer regions: the average rental price for inner zones across the 3 cities stands at £1,150 pcm (per calendar month).
It contrasts to £908 pcm in outer regions, meaning a 27% or £244 difference.
It is little surprise that the most notable difference is in London’s rental market.
Inner areas in the capital see 37% higher rents against outer London, while Birmingham sees just a 9% difference.
Recent rental changes in outer vs inner areas
As for the annual rental growth, the outer areas has outpaced the inner zones in each city. The average rental prices in outer areas barely changed, while inner-city rents dropped by 4,4% in the last 12 months.
Manchester saw the most solid rental performance. Rents in Inner areas remained largely flat, while prices in outer areas jumped by 3,7%. Birmingham’s figures in inner zones were up by just 0,3%, and outer rents increased by 2,2%.
Rents in London struggled across the board, with a slight 1,1% increase in outer areas and a dramatic 7,8% fall in inner zones.
Daniel Jackson at Sequre Property Investment highlights a clear trend of struggling inner-city rental markets because of the pandemic-led decreasing demand. It is despite the steady «return to normality» regarding social life and workplaces.
Jackson says the trend is particularly evident in the London rental market, where inner-city rents fell and outer zones rental values struggled. But the promising news is that other cities showed decent rental growth. This indicates the return of tenants that should drive the inner-city values too.