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Average Rents Up 9% for UK’s Largest Cities & Towns

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    Liverpool, Manchester & Other North West Areas See Strong Rise in Rents

    With tenant demand remaining high and supply levels still trying to catch up, it is no surprise to see average rents rise across the UK’s top cities and towns.

    A new study from the flatshare website Spare Room looks at rental prices in the UK for Q1 2024 compared to the previous year, shedding light on which areas are seeing rental growth.

    Read on for more information.

    Find Out More: Check out our guides on calculating the market value of property and how to buy multiple rental properties for more property-related content.

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      Which Areas Are Enjoying Good Rental Growth in the UK?

      According to the study, the North West was home to the area with the most significant rental growth in Q1 2024.

      Bolton in Greater Manchester saw the largest rent increase among the UK’s 50 largest towns and cities, rising by nearly a quarter (23%) over the past year. Among the UK’s top 50 cities and towns, other notable North West regions include Manchester (9%) and Liverpool (6%).

      Liverpool, in particular, has the fastest-growing economy in the UK (per The Data City), attracting jobs and workers to the city looking for new opportunities. As a result, this makes city centre accommodation more in demand, driving rents up further.

      The UK areas with the most minor change were Sunderland (0%), Middlesbrough (1%), and Dundee (2%).

      Meanwhile, London saw its slowest growth rate since the pandemic (Q3 2021), with rents increasing by 5%.

      In Q1 2024, the most affordable areas to rent outside of London were Bootle (£458) and Huddersfield (£475) for the second consecutive quarter, followed by Blackburn (£476).

      Director at SpareRoom, Matt Hutchinson, comments: “Despite a cooling in demand and a slight increase in supply, rents continue to rise, which isn’t good news for renters. Things are slowing, but it always seems to be the case that rents go up faster than they come back down.

      Discover More: Learn about the direct costs of a buy-to-let property and other property market insights with some of our handy guides, such as our article on real estate business plans.

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      Can We Expect Rents to Continue Growing at a Good Pace?

      Analysis suggests tenants will confront rising rents for three more years amid a cooling property market. The Resolution Foundation forecasts rents to outpace earnings, climbing almost twice as fast until 2027.

      While the rapid rise in new tenancy costs slows, existing renters will soon feel the impact due to slow wage growth, landlord price hikes, and housing shortages. As a result, both new and existing rental agreements could grow by 13% over the next three years, nearly double the predicted 7.5% earnings growth.

      Since January 2022, new tenant rents surged by 18%. However, this increase has yet to affect the private rental sector fully.

      This means that buy-to-let investors could enjoy high-yielding buy-to-let opportunities in the UK property market for the next few years, particularly if they purchase now before price rises accelerate.

      For more UK property insights and content, check out some of our buy-to-let area guides, including:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.