Increase in rental rates soars by 44% throughout England, findings suggest
In a significant development, the East Midlands has seen the highest increase in rent costs over the past decade, with an impressive 50.5% surge. This rise in rental prices is not solely due to the region's absolute cost being high compared to other English regions, but rather a result of strong regional house price growth, increasing rental demand, and ongoing urban regeneration.
According to a tenant lifestyle app called Tlyfe, which conducted research on rental costs in England, the average monthly rent now stands at £1,369. This figure represents a 44.4% increase over the past decade. The research was based on an analysis of government rental market figures published earlier this month.
Leicester, South Gloucestershire, and Bristol also made it into the top ten cities with the highest increase in rent costs over the last decade. Despite London being known as one of the most expensive places to live, it has not experienced the highest increase in rent costs. Instead, Salford saw the highest increase, with a soar of 72.4%.
The East Midlands' rental market has been influenced by several key factors. House price growth has been a significant contributor, with house prices in the region growing by roughly 50% between 2015 and 2025, mirroring the rent increase. For example, in Leicester, house prices increased around 80% over the last decade.
The strong demand for rental properties, driven by affordability, has also played a crucial role. Despite the East Midlands being relatively more affordable compared to London or the South East, it remains an attractive option for tenants such as students, professionals, and families seeking lower-cost housing options. This continued demand in a market with limited new supply drives rent rises.
Cities like Leicester are also undergoing regeneration projects that improve infrastructure and local amenities, making them more attractive to renters and investors. These projects have contributed to the region's economic development, further boosting rental costs.
The rental growth in the East Midlands is forecasted at 3-4% per annum, outpacing some other regions that are already more expensive, indicating sustained demand pressure. This trend suggests that the imbalance in the rental market does not appear to be addressed anytime soon.
The rising cost-of-living, the looming Renters' Rights Bill, and the dire housing shortage are currently impacting the UK's rental market. In a separate news, the West Midlands Combined Authority is accelerating the development of EV charging stations. Meanwhile, there is an ongoing debate about whether shelving the climate bill could be beneficial for the development sector.
For more information on Tlyfe's research on rental costs in England, please visit the provided link.
In light of the ongoing regeneration and increased demand for rental properties, some investors are now focusing their real-estate interests in the East Midlands, sensing a profitable opportunity in the highly dynamic housing market. Moreover, finance experts are keeping a close eye on the growing business prospects in the region, as the steady rise in rent costs, coupled with the predicted rental growth of 3-4% per annum, hints at a promising future for both the housing and finance sectors in the East Midlands.
