Research from Zoopla has found that some UK cities have experienced rent increases of 40% or more over the past four years, averaging over 10% per annum.
Cities such as Manchester, Edinburgh, and Glasgow, along with areas in Dorset and Somerset, saw significant rent rises.
Glasgow recorded the highest increase at 44.4%, with average rents now at £989 a month, remaining below the UK average.
Edinburgh also saw substantial increases, with average rents rising 41.3% to £1,349 a month. Dundee’s rents increased by 39.4% to £803 a month.
Manchester reported a 41% rise, with average monthly rents at £1,122. Cardiff, Stoke-on-Trent, and Bristol followed closely, each seeing approximately 38% rent increases.
Bradford also faced a notable rise, with rents up 42.8%, contrasting sharply with only 4% rental growth recorded from 2016 to 2020.
Mish Liyanage, CEO of The Mistoria Group, said: “The surge in rent prices across the North East and West is down to one clear factor: tenant demand is outstripping the supply of available properties.
“This demand continues to soar as many aspiring homeowners face the uphill battle of saving for a deposit. With the cost of living crisis squeezing budgets and limited financial help from family, renting remains the only viable option for many.
“While mortgage rates have recently become slightly more appealing, the sharp rise in interest rates during 2022, led many potential buyers to press pause on their homeownership plans, opting to stay in the rental market until mortgage repayments stabilize.
“Adding to the pressure, the pool of rental properties has shrunk. Legislative changes and tax reforms have pushed some landlords to exit the market, leaving tenants with fewer options and driving up competition.”
Lower rent increases were seen in places like Aberdeen, where prices rose 23.4% to £718 a month, and Sunderland, with a 27.1% increase.
Leeds experienced a 27.2% rise, with average rents now at £986.
Some southern cities also reported below-average rent increases, with Oxford’s rents up 28% and Brighton’s up 28.5% to £1,629 a month.
Glasgow continues to lead in rental growth, while average rents in Dorset and Somerset surged by 52.5%, now reaching £1,527 a month.
Eastern Scotland saw rents rise by 51.6%, and Cornwall and the Isles of Scilly experienced a 48.1% increase.
Rents in Cumbria increased by 47.9%, and East Wales reported a 43% rise since September 2020.
Liyanage added: “By taxing all rental income as earned income – irrespective of mortgage costs – many landlords found themselves in a cash flow crisis, leaving them with little choice but to raise rents.
“In 2019, further reforms added fuel to the fire. The Government’s ban on tenant fees, while designed to reduce upfront costs for renters, had the unintended consequence of driving up monthly rents.
Liyanage continued: “Instead of a one-off fee at the start of a tenancy, tenants now face higher rental costs over time, ultimately paying far more.
“Landlords are leaving the market en masse, rental homes are in critically short supply, and demand has never been higher.
“The result? Higher rents – again. The ripple effects of these policies have created a perfect storm, with tenants bearing the brunt of rising costs and limited options.”
