As regular readers will know, we here at The Motley Fool, are not exactly brimming with enthusiasm over buy-to-let and the perceived opportunity to make delicious returns.

For the time being, though, rents are still rising in large parts of the country, illustrating the entrenched shortage of buy-to-let properties. And there’s one segment of the buy-to-let market in which landlord returns are really rocketing and that is in the arena of flat- and house-shares.

Rents are surging

According to ideal flatmate’s latest Room Rental Index the average cost of a room in the UK stood at £535 per month in the first quarter, representing a handsome 11% year-on-year rise.

It’s hardly a shock to find that London commanded the most expensive average rents in quarter one at £745 per month, marking a solid 48% year-on-year rise. Glasgow, Bournemouth, Cambridge and Leeds locked out the top five with monthly rents sitting in a £40 range above £500 per month.

Highest Room Rental Costs

City

Monthly Rent

London

£745

Glasgow

£588

Bournemouth

£575

Cambridge

£562

Leeds

£548

Southampton

£546

Oxford

£544

Bristol

£534

Edinburgh

£525

Portsmouth

£515

Manchester

£464

Leicester

£441

Liverpool

£438

Sheffield

£428

Nottingham

£412

Plymouth

£401

Cardiff

£399

Birmingham

£364

Newcastle

£350

Belfast

£270

Aberdeen

£266

UK

£535

While London may have remained the most lucrative city for monthly rents, Leeds took the crown as the major UK city which has seen the largest rent rise over the past 12 months, up 50% to average £548 in the first three months of 2019 and smashing the average nationwide rise of 11%.

Things clearly aren’t rosy across the board, though. Indeed, more than a third of the cities studied by ideal flatmate saw average room rents fall back in quarter one, led by Sheffield, which nursed a whopping 22% decline.

Largest Annual Change

City

Annual Change

Leeds

50%

London

48%

Liverpool

35%

Portsmouth

32%

Leicester

27%

Glasgow

24%

Cambridge

21%

Bournemouth

21%

Southampton

16%

Edinburgh

14%

Bristol

13%

Manchester

10%

Nottingham

8%

Oxford

-5%

Birmingham

-5%

Plymouth

-8%

Belfast

-9%

Cardiff

-10%

Newcastle

-18%

Aberdeen

-19%

Sheffield

-22%

UK

11%

 

 

 

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