Average North West Rent Up 9% - Higher Than National Average

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UK Rent Has Grown 7.2%, Adding £960 to Tenants’ Annual Bill

According to Zoopla’s latest rental index, the average UK rent for new lets is now £1223, adding £960 to the average yearly amount that renters are paying.

The current rate of inflation is not as extreme as we have seen in the market during the past two years. In 2023, rental growth dipped from 11.4% to 8.2%. However, rent is still on an upward trajectory, and the average UK rent has risen 7.2% in the last year, suggesting that the growth is settling down to a steadier rate.

This slowdown is more pronounced in certain regions, so let’s take a look at a breakdown of Zoopla’s data by area.

Learn More: What is a buy-to-let property? Find out the answer to this and other questions regarding topics like stamp duty for BTL with our RWinvest guides and insights.

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Rent Rises Fastest in Scotland, Wales and Northern Regions

Rental inflation in Scotland has fallen below 10% for the first time since 2022. This run of steep rental inflation occurred due to the introduction of a rental cap on existing tenancies. This has influenced landlords to set higher rents at the beginning of new tenancies, driving up the average.

However, the average annual growth for Scotland is still the highest in the UK, according to Zoopla, standing at 9.9% – £70 in cash terms.

Other regions have also displayed hefty growth of 9% or over. This includes Wales with 9.5% (a rise of £80) and North West with 9.0% (a rise of £70). This is comfortably above the national average of 7.2%.

With growing rents and high demand in the North West region, more property investors are deciding to invest in Liverpool and the Manchester property market.

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Why Have Rents Slowed Down in London?

Rental inflation has slowed down the most in London. The annual growth registered 4.2%, much less than the UK average.

London is still the region with the highest rent. Zoopla states that the average is now £2121 in the capital, pushed up by the massive demand for rental properties. So why is the rental price growth slowing down?

The report states that rents in London are hitting an affordability ceiling. This means that tenants in London are unlikely to be able to afford to pay rent if growth continues on the former trajectory of rapid growth. Buy-to-let properties in London have become less attractive recently due to expensive property prices and stalling rental growth.

According to Zoopla’s report: “It suggests landlords are becoming more realistic in pricing their rentals and may be taking cost-of-living struggles into consideration when setting new rates, which tend to be exacerbated for those in the rental market.”

However, there is still potential room for growth in other regions, as evidenced by the steeply rising rents in different areas, especially those in the North.

To read more about the UK property investment scene, take a look at some of our buy-to-let area guides covering topics such as investment property available in Bedford and Royal Leamington Spa property investment.

Author

Jessica Ferris

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