Scotland has a bigger proportional gap between its cheapest and most expensive rental markets than anywhere else in Britain, new research reveals.
Average rents in Lothian stand at £1,415 a month compared with £554 in Dumfries and Galloway, according to analysis by Benham and Reeves.
That £861 difference means rents at the top end of the Scottish market are 155.4% higher than at the bottom, highlighting the variation that can be hidden by regional rental averages.
London has the largest gap in cash terms, with tenants in Kensington and Chelsea paying an average £3,629 a month compared with £1,534 in Bexley – a difference of £2,095, or £25,140 a year.
REGIONAL DIVIDE
The South West records the second-largest proportional difference, with average rents of £1,881 in Bath and North East Somerset compared with £788 in Torridge – a 138.7% gap.
London ranks third at 136.6%, followed by the East of England, where rents in St Albans are 129.9% higher than in East Suffolk.
Rental differences also exceed 100% in the North West, North East and South East.
The East Midlands has the smallest divide of the regions analysed, although rents in West Northamptonshire are still 54.2% higher than in East Lindsey.
LANDLORD RETURNS
Marc von Grundherr, Director of Benham and Reeves, says: “It demonstrates why broad regional rental averages only ever tell part of the story.
“enant demand, available rental stock, employment opportunities, transport links, lifestyle and the type and quality of homes available can vary enormously from one location to the next, and rental values vary accordingly.
“For landlords, understanding these local market dynamics is fundamental. The highest headline rent doesn’t necessarily equate to the strongest investment opportunity and what really matters is the relationship between the price paid for a property, the rent it can command and, most importantly, the depth and consistency of tenant demand.
“This is why successful landlords tend to take a far more granular view of the market, focusing on the fundamentals of an individual area rather than being distracted by broad regional averages.”
