Gap in rents between north and south England ‘smallest on record’, letting agent finds

” Yet it’s just remained in the last year that the gap has actually truly started to tighten beyond the factor we’ve formerly seen. This has been driven by the slowing down of rental growth throughout southern England triggered by higher price pressures. While renters in the south have actually seen weak growth in portion terms, in money terms, they have actually dealt with big surges. A 10% increase in south of England rental fees would certainly cost tenants an added ₤ 1,581 a year, ₤ 428 greater than for a tenant in the north.”

Henry Sandercock has spent greater than 8 years as a reporter covering a wide variety of beats. Having actually studied for an MA in journalism at the University of Kent, he began his occupation in the garden of England as a press reporter for regional TV channel KMTV.

In small terms, the regular cost of letting out a home in the north has actually risen by an average of 48% given that 2019. In the south, rental fees are up 34%, with this number likewise developing the GB average. The narrowing shows the cyclical nature of the real estate market with house prices in the north of England climbing 31%, almost double the southerly rate. These numbers have actually been mirrored in the rental market, with leas in the north of England swiftly playing catch up.

While the south saw rental growth peak at 8.7% year-on-year in August 2023, this price has actually slowed substantially to 5% throughout the very same month in 2024. The north has actually primarily preserved the speed of increases, expanding 9.6% this August compared to 9.7% a year ago.

Discussing the searchings for, head of research study at Hamptons, Aneisha Beveridge, stated: “Just like home prices, the rental north-south divide has actually been closing for the last 5 years. The narrowing mirrors the intermittent nature of the housing market with residence rates in the north of England rising 31%, almost double the southern rate. These figures have been mirrored in the rental market, with rents in the north of England promptly playing catch up.

A 10% boost in south of England rents would certainly cost tenants an added ₤ 1,581 a year, ₤ 428 more than for a lessee in the north.”

In small terms, the common cost of letting out a home in the north has risen by approximately 48% since 2019. In the south, rental fees are up 34%, with this figure additionally developing the GB average. It means tenants throughout England, Scotland and Wales have seen a ₤ 349 average increase in month-to-month leas – including ₤ 4,184 a year for the typical tenant.

Greater London has actually seen several of the lowest prices of development, with prices having actually risen 27% numerically, yet just 3% when rising cost of living was considered. For Scotland, small leas rose 48% and 24% in real-terms, while in Wales – regardless of a small increase of 19% – actual rental fees were 5% down on 2019’s numbers.

Treatment the month of August, the letting agent’s research has actually found that the average rental fee in the north of the nation is almost 10% up year-on-year – outmatching the 5% development seen in the south. This has actually shut the rate void between the areas to 37% (₤ 357), which is the smallest distinction since Hamptons started its index in 2013.

In its monthly Lettings Index, Hamptons has discovered the rental fee gap in between the north and south of England has actually shut considerably over the past year. At 37%, the distinction in between rents in the two locations has actually tightened from 43% a year back, and is down 18 percentage factors from an optimal of 55% in November 2021.

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After relocating to NationalWorld.com – a nationwide news website run by the publisher of The Scotsman and Yorkshire Blog post – Henry began reporting on the cost of living dilemma, ending up being the title’s money editor in very early 2023. He covered every little thing from the power crisis to scams, and rising cost of living. You will certainly now locate him creating for MoneyWeek. Away from job, Henry stays in Edinburgh with his partner and their whippet Murmur.

Henry after that worked at the BBC for three years as a radio producer – mainly on BBC Radio 2 with Jeremy Creeping plant, but likewise on significant BBC Radio 4 programs like The World at One, PM and Broadcasting Residence. Switching to print media, he covered fresh foods for recognized magazine The Grocer for two years.

Based on a three-month rolling standard of achieved leas, the research study located that the typical brand-new tenancy in the south came in at ₤ 1,318 per calendar month (pcm). This compared to ₤ 960pcm in the north – an area that consists of the North East, North West and Yorkshire & Humber areas.