Glasgow sees UK’s highest rental increase as prices soar by £73 per month
The cost of renting a home in Glasgow has increased by a staggering £73 per month on average, a record-breaking hike for the city and the highest rental increase in the UK over the last year, according to global mobility expert ECA International (ECA).
ECA’s latest Accommodation Ranking report shows Aberdeen is the cheapest city to rent in the UK, ranked 69th in Europe, as prices increase by a moderate £20 per month.
Edinburgh, the UK’s fourth most expensive city, has seen a slowing in rental increase by just £29 per month, compared to the £106 per month increase experienced in 2020.
Alec Smith, accommodation services manager at ECA International, said: “Glasgow is increasingly becoming an attractive option for young professionals; with properties being built in prime locations targeted at this demographic, which is driving up the rental market price, reflected in our latest findings. Rent is likely to continue to rise, as Glasgow City Council commits to increase the core city centre population by 40,000 by 2035.
“Though Aberdeen’s slowing oil and gas industry saw the Scottish city drop last year to its lowest ranking since 2012, we’ve since seen a slight upturn, as the market dropped to such a degree that it has since rebounded. Furthermore, recent legislation, which strengthens tenants’ rights, has increased confidence in the market.”
Edinburgh dropped one place in the European ranking, now 44th.
The average cost of a three-bedroom home in Edinburgh is £1,664, in Glasgow is £1,187, and in Aberdeen is £1,180.
However, the global pandemic is yet to influence rental prices for living in London, as economies adjust to the impact of COVID-19.
While London maintains its position as the most expensive location in Europe to rent for the fifth year in a row, and fourth in the world, the landscape is set to change as cities navigate their way through the latter stages of the global pandemic. Though London’s renters experienced a rise of £56 per month, it’s considerably less than the rental increase in 2020 (£121 per month).
The average cost of a three-bedroom, mid-range home in a prime London location is now £5,364 per month.
Mr Smith added: “As expected, the COVID-19 pandemic is set to influence rental prices in London, but the full extent of this is still yet to be seen. Future falls in rents are expected in prime central districts, and it’s likely some level of remote working will remain across many industries post-pandemic. A central location is therefore likely to move down the list of priorities for many expat renters, with larger properties and outdoor space becoming more attractive.”
Manchester, the UK’s second most expensive city, has seen a monthly rental increase of £39. Meanwhile Birmingham, which is a staggering 184% cheaper per month than London, has seen rent go up by £54 per month, more than double the increase the city experienced in 2020 (£25).
The average cost of a three-bedroom central home in Manchester, ranked 28th in Europe, is £1,913 and in Birmingham, ranked 31st, £1,885.
Mr Smith concluded: “The construction of HS2 is still increasing corporate confidence in Birmingham, and therefore demand for accommodation is driving up rental prices, despite ongoing delays. We’re seeing more business growth in large UK cities outside of London, with organisations choosing to open or relocate operations in the UK, particularly in Manchester.”