★★★★★

Rated Excellent

UK Property Finance

★★★★★

Rated Excellent

open 7 days

Revealed: Where UK Rent Prices are Rising Most Rapidly

by | Oct 18, 2019 | Other Finance News

The average property rental prices in the United Kingdom have been accelerating at a phenomenal rate over recent years. Now, the results of a new study, published by property website Zoopla, reveal the areas of the UK most affected by skyrocketing home rental prices.

The Zoopla report reveals that the biggest increases in average property rental prices of the past year occurred in Bristol, Leeds, and Nottingham. Meanwhile, the biggest annual reduction in property rental prices was noted in Aberdeen.

Specifically, Zoopla reported that tenants in Nottingham signing new tenancy agreements this year are paying around 5.4% more than they would have in 2018. Both Bristol and Leeds recorded a 4.5% annual increase in inflation that significantly outpaced average UK wage growth for the same time period.

Despite the significant rental property price hikes of recent years, Zoopla stated that it is actually becoming more affordable for tenants to rent homes in the UK. This is partially attributed to more first-time buyers getting on the property ladder, taking at least a little pressure off the property letting market.

In Aberdeen, the average property rental price decrease of 4.1% was attributed to wider economic issues affecting the area. Aberdeen’s economy is closely tied to the oil industry, which has a knock-on effect on both average house prices and monthly rent prices.

Zoopla’s report also showed that property rentals are becoming cheaper in Middlesbrough and Coventry.

London leads with the highest rental costs.

The most recent Family Resources Survey carried out by the government found that around half of 25- to 34-year-olds and three-quarters of 16- to 24-year-olds now live in privately owned rental properties in the UK. The vast majority of rental properties in the United Kingdom are located in London, which is also where average rent prices are the highest by a significant margin.

According to the report from Zoopla, most private tenants in the United Kingdom use approximately a third of their earnings to cover their rent. Private tenants in London, Oxford, Brighton, and Cambridge spend a considerably higher proportion of their earnings on rent, whereas tenants in Stoke, Bradford, and Hull rank at the opposite end of the scale.

Average property rental prices in the UK are up approximately 2% year-on-year, though this is well below the average annual wage increases for UK workers.

UK-wide rental prices are up by an average of 2% in the last year, which is about half the typical level of wage rises.

“Renting is more affordable today than the 10-year average. An increase in first-time buyers, 80% of whom exit the private renting sector to buy, has also moderated rental demand,” reported Zoopla, commenting on the findings of the study.

“Rental affordability varies widely across the country, reflecting the relative strength of local economies.

Recent Posts

Financing Co-Living Spaces: The Next Frontier for UK Property Investors

The UK’s urban landscape is evolving, with young professionals, digital nomads, and transient workers seeking flexible, community-driven living solutions. Co-living, shared accommodation blending private bedrooms with communal spaces like kitchens, coworking areas,...

How Landlords Can Expand Their Portfolios Using Bridging Loans

For landlords looking to grow their property portfolios, bridging loans can be a powerful financial tool. These short-term loans provide quick access to capital, enabling landlords to seize time-sensitive opportunities in the UK property market. This blog post...

Are Bridging Loans Available to Businesses?

For businesses facing cash flow challenges or time-sensitive opportunities, bridging loans can be a game-changer. Property investors and businesses across various industries are increasingly using these short-term, flexible financing options. Can businesses access...

Right-to-Buy Mortgages: Turning Your Council Home Into Your Own

For many council tenants in England, the dream of owning their home is closer than they might think, thanks to the Right-to-Buy scheme. Introduced in the 1980s under the Housing Act, this government initiative allows eligible tenants to purchase their council home at...

Owner-Occupied vs. Investment Properties: Choosing the Right Commercial Finance Option

Are you a business owner looking to purchase commercial property in the UK? Whether you’re planning to occupy the space yourself or invest in a property for rental income, choosing the right financing option is crucial. In this blog post, we’ll explore the key...

Residential vs. Commercial Mortgages: Key Differences Every Borrower Should Know

When it comes to financing property in the UK, whether you’re purchasing your dream home or investing in a business premises, the type of mortgage you get will shape your financial commitments for years to come. In this blog post, we’ll compare residential and...

Using a Secured Loan to Raise a Deposit for Your Next Property Purchase

Purchasing a new property can be an exciting milestone, but one of the biggest hurdles is often coming up with a sufficient deposit. For many, a secured loan offers a viable route to bridge that gap. In this post, we will explore how secured loans work, the benefits...

Understanding Interest Rates and Loan Terms Through Calculators

Navigating the world of loans in the UK can feel overwhelming, especially when faced with various finance options and complex interest calculations. Fortunately, loan calculators are available for different options such as secured loans, bridging loans, development...

Key Housing Market Predictions for 2025

As we step into 2025, the UK housing market is poised for notable changes, particularly concerning mortgage rates. Recent analysis suggests a favourable shift for prospective homeowners and investors. Projected decline in mortgage rates The consumer body Which?...

How a Secured Loan Calculator Can Help You Make Smarter Financial Decisions

When contemplating a secured loan, the financial risks can be significant. Whether you're planning a home renovation, consolidating debt, or purchasing a vehicle, understanding your borrowing power and repayment terms is crucial. A secured loan calculator is a...

Categories