The gap between rental prices in the South and North of England has shrunk to 37% or £357 per month, its lowest level since records began in 2013, according to Hamptons’ latest Asking Price Index. This decline reflects a significant change from a 43% gap recorded in August 2023 and a peak of 55% in November 2021.
Rental growth in the South of England has cooled from 8.7% to 5.0% over the last year, while the North of England continues to see rents rise at 9.6% year-on-year, a similar pace to last year. The overall rental growth across Great Britain slowed to 5.0% in August, the lowest rate since August 2021.
Over the past five years, rents across the country have increased by 34%, equating to an extra £349 per month. However, after adjusting for inflation, real rental growth stands at 10%, with some regions, like Wales, seeing a 5% real-term fall in rents.
Aneisha Beveridge, head of research at Hamptons, said: “Much like house prices, the rental North-South divide has been closing for the last five years. The narrowing reflects the cyclical nature of the housing market, with house prices in the North of England rising 31%, nearly double the Southern rate. These figures have been mirrored in the rental market, with rents in the North of England quickly playing catch up.”
Beveridge added: “While tenants in the South have seen weaker growth in percentage terms, they’ve faced big cash increases. A 10% rise in Southern rents costs tenants £1,581 a year, £428 more than for a tenant in the North.”
