Predictably, average rents in the South of England are much higher than those in the North. As usual, London had the highest average monthly rent, a hefty £2119. The most affordable rent can be found in the North East, where tenants typically pay £695 per month.
However, rental growth has been slowing down, and buy-to-let in London has been particularly affected, as the capital appears to have hit an affordability ceiling. According to the latest data, rental inflation in the city has dropped from +16.1% a year ago to +6.4. Zoopla believes there will be a further slowdown in rental growth this year due to resistance to higher rent in the most expensive markets.
However, less pricey regions are still registering considerable annual growth. Two areas even experienced double-digit percentage changes. Namely, the North West had +10.2%, adding £80 to the average rent to bring it to £847, and Scotland jumped up +11.6% to now stand at £791 after growth of £80.
Scotland will likely continue to show the fastest rental inflation due to the rent cap introduced in September 2022. Regions in Northern England, such as the North West, are also expected to keep experiencing rental growth as there is still room for affordability.
Learn More: For insights regarding the North West property market, take a look at our guides covering buy-to-let properties in Manchester or the best Liverpool property investments.
