In the past year, average rent prices across the UK have surged by 9.1%, with tenants in London and Scotland experiencing the steepest hikes, according to a new analysis by rent guarantee firm Zero Deposits. The study, which utilized April rental data from the Office for National Statistics, reveals that rents in the capital soared by 11.2%, while north of the border, they rose by 10.5%.
In stark contrast, the North East saw a more modest increase, with rents climbing just 6.1% over the same period.
Despite significant regional variations, the research indicates a more uniform pattern in rental price growth when comparing different property types within each region. Nationally, rents for detached properties increased by 8.6%, semi-detached homes by 8.7%, and terraced houses by 8.5%. Flats saw the highest growth rate at 9.9%, though the difference is marginal.
“This means there’s just a 1.4% swing between the lowest rate of rental growth — detached homes — and the highest — flats,” the report states. “However, at a regional level, this gap narrows to 0.8% or less across all regions except one.”
Scotland stands out as the most uneven rental market, with a 12.9% annual increase in detached home rents and a 9.5% rise for terraced houses, marking a 3.3% difference. Conversely, the North West and East of England boast the most balanced markets, with just a 0.5% gap between the highest and lowest property type growth rates.
Zero Deposit CEO Sam Reynolds commented on the findings, noting a shift in renting habits. “Although renting remains a necessity for many, we’ve observed a lifestyle change where people rent longer by choice due to the flexibility it offers. Life milestones like marriage and children lead to evolving rental needs,” he said. “It’s unsurprising that rental prices have consistently grown across all property types, reflecting the diverse demands of renters, from young professionals to growing families.”