Southern landlords ease rent hikes as affordability hits limit
- The average rent in the south of England was £357 higher than in the north as of August, the lowest gap in a decade.
- Year-on-year rental growth in southern regions has decreased from 8.7% to 5%, while the north remains steady at 9.6%.
- Landlords in the south are easing rent hikes as tenants face affordability challenges.
Recent research from Hamptons reveals a significant shift in the rental market across England, particularly between the north and south. As of August, the average rent in the south exceeded that in the north by £357 per month, marking the smallest gap recorded since 2013. This represents a 37% higher rental cost in the south compared to the north. The cooling of rental growth in southern regions, including London and the southeast, has been notable, dropping from 8.7% in August of the previous year to 5% this year. In contrast, the northern regions have experienced a steady rental growth rate of 9.6%, indicating a robust demand for rental properties in that area. Aneisha Beveridge, head of research at Hamptons, suggests that these trends reflect a broader shift in the rental market dynamics, as affordability constraints begin to impact tenants in the south. Landlords in southern England are reportedly easing rent increases as tenants reach their financial limits. This adjustment may be a response to the changing economic landscape, where rising living costs and stagnant wages are affecting the ability of tenants to afford higher rents. The narrowing rent gap could have significant implications for the housing market, potentially leading to a more balanced rental landscape across the country. As affordability becomes a pressing issue, landlords may need to reconsider their rental strategies to retain tenants and ensure occupancy rates remain stable.