Hamptons: North-South rental divide widens
The North-South rental divide has increased by 11% since February 2014.
In the year to February 2020, four of the top five cities, which noted the greatest increases in rental payments, were in the south of the UK.
Bristol recorded the highest growth, with the average rent rising by 6.6% in the year to February. This was followed by Oxford, which rose by 5.0%, Norwich by 4.8%, Glasgow by 2.9%, and London by 3.0%.
The data also shows that the average cost of a newly let property increased by 3.3% in February 2020, three times the rate recorded in February 2019, which was 1.1%.
Cities have seen the largest rise in average rents, up 5.4% year-on-year. Meanwhile, towns and suburbs noted an uplift of 1.8%, and 1.1% in the countryside.
Aneisha Beveridge, head of research at Hamptons International, said: “The rate of rental growth has tripled over the last year.
“Every region saw rents rise more in February 2020 than in February 2019, but cities – where the imbalance between supply and demand is greatest – have seen the biggest increases.
“In a reversal of three years ago, cities in the south are now seeing stronger rental growth than those in the north.
“Affordability barriers, making it harder for people to buy a home, tend to be higher in Southern cities.
“And it’s in these areas where demand for rental properties often outpaces supply. In recent years falling rental stock levels, particularly in the South, where taxation changes have hit lower yielding landlords hardest, has exacerbated this.”