Contrasting trends: rent declines in wealthy regions like Surrey and London
Tenants in Bristol are paying 41% more for a rental property than they did just five years ago, underlying the scale of rental cost increases across England.
The research comes from Zero Deposit, the tenancy deposit alternative, which broke down how rents have risen or fallen in the past five years up and down the country.
Across England as a whole, rents have risen by 13.7% in the past five years, bringing the average cost of renting to £960 per month.
Inflationary pressures on energy and mortgages have contributed to the increase, while the UK has a shortage of rental supply to meet demand.
Where rents have surged
Across the City of Bristol it now costs an average of £1,513pm to rent a property.
This is 40.9% more than the £1,074 it cost just five years ago, suggesting there’s a lack of supply to meet demand from incoming tenants in the city.
The second fastest growing region is Gloucester, where rents have surged by 38.2% to £861.
Mendip in Somerset makes up the top three, as tenants now have to pay 33.6% more than five years ago, at £922 per month.
Liverpool and Norwich are two other cities where rents have been pushed up by strong demand, as they experienced growth of 33.1% and 31.9% respectively.
Rents decline in wealthy regions
Rents have fallen or stagnated in some of the priciest regions across England, in particular in Surrey and London.
Elmbridge in Surrey has seen a major decrease in the cost of renting, by -21.6%, though it still stands at £1,554 per month. Guildford in west Surrey has also seen a reduction of -3.8%.
Rents have also fallen across four districts of London: by -8.1% in the City of London; -6.5% in Richmond Upon Thames; -3.9% in Kensington and Chelsea; and by -2.9% in Brent.
Sam Reynolds, CEO of Zero Deposit commented: “Tenants are struggling with rental affordability, and with huge increases to the cost of renting in cities like Bristol and Liverpool it’s easy to see why. Even in areas where rents have fallen, the cost of securing a property remains extremely expensive.
“In the past few years the market has been rocked by rising energy costs and mortgage rates, while the lack of supply to meet demand is also serving to push up prices in previously affordable regions.
“This means that those reliant on the rental sector in order to live can face incredible competition when searching and an even larger financial barrier when it comes to placing a deposit and covering the asking rent on a monthly basis.”