Rents continue rising as the North outpaces London

Rents continue rising as the North outpaces London

0:01 AM, 13th August 2024, About 2 months ago

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Rents across Great Britain continued their upward trajectory in July, with the North of England outpacing the capital by a significant margin, Hamptons reveals.

Its data shows that the average rent for a newly let home jumped 5.7% year-on-year to £1,354.

While this pace of growth has steadied, the picture outside London is very different.

Rents in the North East, North West and Yorkshire and Humber surged by 10.3% annually, triple the 3% increase seen in London.

Also, inner London rents returned to growth after a three-month decline, surpassing outer London for the first time since January.

‘Rental growth continues to outpace inflation’

The head of research at Hamptons, Aneisha Beveridge, said: “Rental growth continues to outpace inflation, despite the pace of growth moderating over the last year.

“However, there are also signs that the large increases in stock levels since 2023 are beginning to subside.

“In January, stock levels were up 34% year-on-year, a figure which is now 22%.”

She adds: “A fall in stock levels is likely to reignite the pace of rental growth, particularly given that longer-term there are around a third fewer rental homes than there were five years ago.”

Shift in property size

The firm’s data also shows that the rental market is seeing a shift in property size.

Smaller homes are experiencing faster rent growth as tenants seek to reduce monthly outgoings.

One-bed properties climbed 7.6% year-on-year to £1,092 and now match the average two-bed rent from September 2022.

Meanwhile, larger homes saw more modest increases.


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