England’s south coast sees highest rent increase in UK
- Southampton, Portsmouth and Worthing average rent prices rise by +8%, the highest rise in the UK
- Renters in Yorkshire get the most for their money with UK’s lowest average rents of £978
- Landlords didn’t flock to sell up, amidst Renters’ Rights Act anticipation
A report released today from one of the UK’s leading estate and lettings agency networks, Lomond, signals a lettings market that remains resilient in the face of change, from the implementation of the Renters’ Rights Act to the anticipated Budget expectations. The national average rental price sits at £1,461, a -5% decrease from 2024.
Whilst there has been a modest decline collectively, the average rent prices increased in several major regions between July and September, particularly in areas where rental growth is outpacing the value of properties. The popular south coast of England saw rents increase by +8%, with Southampton and Portsmouth seeing the largest uptick in new tenant applications, highlighting changing affordability trends and tenant movement patterns in this populated region.
Of particular note on the south coast, Worthing saw rent prices rise by +8% to £1,276, with the supply and demand imbalance in the market remaining largely unchanged, as significantly more tenants seek accommodation than there are properties available. The most popular properties in the seaside region remained smaller two- and three-bedroom, well-maintained homes between July and September.
More affordable areas such as the Midlands and the North West are also seeing price increases, albeit at a steadier pace than in previous years. The Midlands saw average rent prices rise by +5%, to £1,300 compared to 2024, far outpacing the national view of a +0.2% increase.
In Manchester, prices rose by +4%, making the average rent £1,346, pointing to sustained tenant demand. It was also reported that tenants are becoming more cost-conscious, factoring in council tax, heating costs and property condition more than ever before when making housing decisions.
Having historically recorded some of the sharpest price growth, London has experienced a more conservative increase of +4%, with the report showing a dip in activity from buy-to-let investors and more accidental landlords – those unable to sell – stepping into the lettings space. The current average rent in London remains steady at £2,652, still 2.5 times higher than the average outside London.
Although Scotland had a -1% decrease in rent prices to £1,348, Lomond recorded an increase of +38% in requests from landlords wanting to let out their properties in Q3, compared to 2024, indicating improving landlord confidence follow last year’s rent freeze lift. Data also shows a notable shift in buyer priorities in Scotland, with presentation mattering as much as location. Move-in-ready homes are increasingly sought after, as rising mortgage costs leave limited spare funds for renovations.
With the biggest shift in the private rental sector, the Renters’ Rights Act, now a reality, the industry held firm in the anticipation of its passing when it came to landlords retaining their properties. Whilst some predicted a mass-sell, statistics show a steadfast majority of professional landlords opting to hold onto properties, preparing for the change and optimising yields where possible.
It has also been recorded that 30% of tenants are now asking about the Renters’ Rights Act at application stage, showing growing awareness amongst renters too of the implications it will have on the sector.
Group Chief Executive Ed Phillips said: “The private rented sector has witnessed the most significant legislative shift in history, so it is promising to see extremely steady results in the lettings market, across all regions.
“Whilst overall there was a slight dip in rental prices, lets agreed and valuations remained relatively stable between July and September. Landlords continued to expand their portfolios, with new investors, undeterred by past market conditions, and with the lowest buy-to-let mortgage rates since August 2022, finding themselves entering a changing landscape ripe with opportunity.”
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