Local rent gaps exceed 100% across seven regions

Landlords face local rent differences of more than 100% between the most and least expensive areas in seven regions of Britain.

Research by Benham and Reeves compared average monthly rents within each region, measuring the gaps in £ and as a proportion of the lowest figure.

The letting agents found that Scotland recorded the largest percentage difference, followed by the South West.

However, London’s gap was the biggest in cash terms, equivalent to £25,140 a year.

Comparing local rent markets

Marc von Grundherr, a director of the firm, said: “We see exactly the same dynamic within London.

“A tenant looking for a home in Kensington and Chelsea is operating within a very different market to someone searching in Bexley, despite both technically renting within the same region.”

He added: “For landlords, understanding these local market dynamics is fundamental.

“The highest headline rent doesn’t necessarily equate to the strongest investment opportunity and what really matters is the relationship between the price paid for a property, the rent it can command and, most importantly, the depth and consistency of tenant demand.”

Scotland’s widest rent gap

Average monthly rents in Lothian stood at £1,415, compared with £554 in Dumfries and Galloway.

That puts Lothian £861 a month, or 155.4%, above Scotland’s least expensive PRS market.

In the South West, Bath and North East Somerset recorded an average of £1,881, against £788 in Torridge.

The difference between the two was 138.7%, keeping the region ahead of London on the proportional measure.

London’s monthly rent difference

Kensington and Chelsea was the most expensive location analysed across Britain, with an average monthly rent of £3,629.

Bexley’s average stood at £1,534, leaving a £2,095 monthly difference within the capital.

The East of England, North West, North East and South East also recorded gaps above 100% between their highest and lowest local averages.

The East Midlands had the smallest divide, although rents in West Northamptonshire were still 54.2% higher than in East Lindsey.