New Poll Reveals Most and Least Affordable Cities in the UK

By Simon Morris On Friday, November 28 th, 2014 · no Comments · In

A new poll has shown the most and least affordable cities to rent in the UK, leading Simon Morris to ask; where can UK property investment funds capitalise on rental rates to reap the highest returns?

The Profitability of the Rental Market

A residential and commercial property expert, Simon uses his knowledge to act as a consultant to UK property investment funds, showing them how to reap the highest returns on their property portfolios.

Many funds choose to invest in the residential market and make money through renting properties out to tenants. That is why it’s particularly significant that a new poll has shown the most affordable cities to rent throughout the UK.

Measuring Rents in 16 Cities Throughout the UK

This week the Birmingham Mail reported that insurance provider Homelet released a poll chronicling rental rates in 16 cities throughout the UK. It measured rates in relation to the percentage of an average renter’s monthly income.

London measured the highest rate; 49%, which is another reason why Simon always advises you invest wisely in the UK Capital to reap a significant return. This was followed by Birmingham and Edinburgh in joint second at 47%. Plymouth was shown to be the most affordable city at 27%.

Rental Prices Have Fallen or Stayed Static in Some Areas of the UK

In other areas of the country, data showed that though rental prices are falling or static, for their inhabitants, rent is a cost that stretches their funds to the limit of affordability.

The chief executive of Barbon Insurance Group, a component of Homelet, commented on this, suggesting that “in some parts of the UK, such as Scotland and East Anglia, where rental prices are now falling or stagnant, the data tells us that renting in some cities in these regions is still stretching tenant affordability.”

Growth Hotspots

In other words, you need to look at why rental rates are rising, to see if you can use them to generate a long term revenue stream. Invest in a city whose rental rates are set to grow, and you could secure a valuable long term asset.

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