RENTS have risen 5% on average in more affordable areas, double the national average, as property experts warned that “it’s the lowest-paid feeling the squeeze hardest”.
They are rising quickest in areas where rents are below £750 per calendar month – over twice the national average of 2.1%, according to Zoopla’s latest Rental Market Report.
Regionally, Carlisle (+9.1%), Kilmarnock (+9%) and Halifax (+6.5%) are among the fastest-rising markets where rents are rising quickly off a lower base.
On the other hand, the likes of Bournemouth (-1.7%), Nottingham (-1.5%) and Birmingham (-1.1%) have each seen rents fall, with weaker demand and affordability pressures keeping rental growth lower across most UK cities.
Despite this, average earnings nationally are growing at 4% Year on Year – nearly twice the rate of UK rental inflation.
Each UK region or country has 20-30% fewer homes to rent than before the pandemic – a lack of new investment is placing upward pressure on rents while limiting choice for renters.
Enquiries per rented home at its lowest level of 6 years – hitting 5.6 enquiries per rental listing.
Government policies targeting landlords are clearly not working
Patricia Ogunfeibo, Founder & non-practicing Solicitor at London-based tenant2owner, said landlords are still selling up.
She added: “Landlords are still selling up. The obvious way of keeping rents under control is to stop them leaving the market as well as helping tenants afford their own homes.
“That rents are rising fastest in cheaper areas isn’t surprising. Expensive cities have hit an affordability ceiling and so displaced renters are now pushing up demand in lower-cost areas.
“Irrespective of what the numbers are indicating, landlords who price realistically, manage well, and stay professional will thrive, as will renters with a demonstrable income, good credit and a good landlord’s reference.”
Steven Greenall, Mortgage and Protection Advisor at Dunmow-based Protect & Lend, said tenants suffer when the government targets landlords.
He added: “Government policies targeting landlords are clearly not working with increases such as these. In Scotland, rents are up over 7.5% last month where there are supposed to be rental controls.
“Politicians continually fail to realise if you deter landlords the only ones to suffer will be tenants. Landlords have the option of investing their funds elsewhere, renters don’t have the choice. The only way to reduce rent is to increase supply. Basic economics.”
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said landlord-bashing does not solve anything.
She added: “The worrying part of this report is that rental pressure is now hitting the places people used to move to for affordability. When cheaper towns see faster rent growth, it means the safety valve is closing. Rents are rising faster in lower-cost areas because demand has been displaced.
“People priced out of major cities look further out, local wages then struggle to keep up, and a shortage of rental homes gives tenants very little negotiating power. It is not that these markets have suddenly become luxury locations; it is that affordability pressure has spread. The solution is not landlord-bashing.
“We need more rental supply, more long-term investment, faster planning, and policy that does not scare good landlords out while pretending tenants will somehow benefit from fewer homes. My advice to landlords is simple: know your numbers properly. Stress-test mortgage costs, tax, repairs and voids. Fair rents and good tenants are worth more than chasing every last pound and creating turnover.”
When rent eats the wage, morale goes with it
Kate Underwood, Founder at Southampton-based Kate Underwood HR and Training, said rents are going out of control for average workers.
She added: “This is a workforce story dressed up as a housing one. When rent eats the wage, morale goes with it, and right now far too many people are taking a second job just to keep the lights on, not to get ahead. For small businesses it’s a quiet crisis.
“You can’t always match the pay rises that rent demands, but you can offer flexibility, security and a culture worth staying for. The real risk is a team that’s physically at their desk but mentally adding up the cost of living. Earnings rising faster than rents nationally sounds reassuring, until you remember averages don’t pay anyone’s rent.
“In the cheaper areas where rents are climbing fastest, it’s the lowest-paid feeling the squeeze hardest, and they’re the ones with the least room to absorb it. So my advice to employers is simple. Talk to your people about money before burnout does the talking for you.”
Photo by Kateryna Hliznitsova on Unsplash.
