Rental prices on England’s south coast have risen faster than anywhere else in the UK, according to new data from Lomond.
Average rents in Southampton, Portsmouth and Worthing increased by 8% between July and September, outpacing every other region.
The average rent across the UK now stands at £1,461 – a 5% fall on last year – with the South Coast bucking the wider trend of cooling prices.
Yorkshire remains the most affordable region, with tenants paying an average of £978 a month, while rents in London continue to command a significant premium at £2,652 – 2.5 times higher than the national average.
RENTERS’ RIGHTS ACT
Despite the Renters’ Rights Act coming into force and speculation of a landlord exodus, Lomond’s data indicates that most landlords have opted to retain their properties.
Worthing saw the sharpest increase, with average rents rising 8% to £1,276 as demand continued to far outstrip supply. Two- and three-bedroom homes remain the most sought-after property types across the seaside region.
More affordable markets such as the Midlands and the North West also saw moderate increases, with average rents up 5% to £1,300 and 4% to £1,346 respectively.
PRICE-SENSITIVE
In both areas, tenants are becoming more price-sensitive, weighing council tax, heating costs and property condition more heavily in their decisions.
Scotland recorded a 1% decline in average rents to £1,348, though the number of landlords listing properties to let rose 38% on last year — a sign of renewed confidence following the lifting of the rent freeze.
Lomond’s report also points to growing tenant awareness of the new Renters’ Rights Act, with 30% of applicants now asking about its impact at the start of the lettings process.
RIPE OPPORTUNITY
Ed Phillips (main picture), Group Chief Executive at Lomond, says: “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.”
