UK Rents Stabilising Nationwide, But Surging in the North

Rent prices across the UK may be showing signs of stabilising overall, but that headline figure hides growing pressure in many parts of the country. While average rents are no longer rising as sharply nationwide, tenants in several towns and cities are facing steep increases that are stretching household budgets.

For many renters, particularly those already dealing with higher food, energy and transport costs, these changes are difficult to absorb. Areas that were once viewed as more affordable alternatives to major cities are becoming increasingly expensive.

Are UK Rents, As a Whole, Rising or Falling?

Looking at the UK as a whole, average rents have increased by just 0.5% over the past year. This suggests that the rapid growth seen in previous periods has started to slow, at least on paper.

In London, rents have even fallen slightly, dropping by 0.9% to an average of £985 per month. While this marks a shift from earlier trends, the reduction is small and is unlikely to bring meaningful relief to most households. For renters spending a large share of their income on housing, minor changes at the national or regional level often make little difference to day-to-day affordability.

Rising Costs Continue to Hit Tenants Hard

Despite signs of stabilisation, many renters remain under significant financial strain. A large number of households are spending between 40% and 50% of their income on rent, leaving limited room to manage other living costs or unexpected expenses.

In this context, flat or slightly falling rents in some areas offer little comfort. For renters already close to their limits, only more substantial reductions would ease the pressure in a noticeable way.

Why Have Rents Increased in Northern England?

The situation looks very different in parts of northern England, where rent increases have been very pronounced. Almost half of the most popular towns and cities among flat sharers that recorded year-on-year rent rises of more than 5% are located in the North.

Keighley in West Yorkshire, long regarded as an affordable place to rent, has seen average room rents rise by 14% over the past year, reaching £600 per month. This marks a significant shift for an area that has traditionally attracted renters looking for lower costs.

In Merseyside, Bootle has also seen a sharp rise. Average room rents there have increased by 18% compared with the same period last year, bringing the monthly cost to £527. Bootle was previously known as one of the cheapest places to rent in the UK, but that position has now been taken by Burnley in Lancashire.

Burnley recorded the highest year-on-year rent increase nationwide, highlighting how quickly conditions are changing in towns that were once seen as budget-friendly options.

Midlands Rents Have Also Climbed

Rent pressures are also being felt across parts of the Midlands. Stourbridge has recorded one of the largest increases, with average room rents now standing at £649 per month.

This figure is £31 higher than in Birmingham, where rents have fallen slightly over the past year to an average of £618. Wolverhampton has also seen rent growth, though it remains more affordable, with prices around £65 lower than Birmingham’s average.

These shifts show how regional differences are narrowing, with traditionally cheaper towns catching up to larger cities as demand spreads.

What Is the Situation in Scotland?

In Scotland, average rents dipped slightly in the final quarter of the year, falling by 0.2%. However, this overall decline masks notable increases in several towns and smaller cities.

Places such as Perth, Paisley, Livingston and Kirkcaldy have all recorded rent rises of more than 5%, suggesting that pressure is continuing to build outside the largest urban centres. For renters in these areas, the experience is very different from what the national average suggests.

Conclusion

Taken together, the figures point to a housing market where pressure is shifting rather than disappearing. As renters move away from major cities in search of lower costs, demand is rising in smaller towns and regional centres.

This trend is pushing rents higher in areas that were once considered more affordable, reducing the number of realistic options available to tenants. Without a meaningful increase in housing supply, particularly in the rental sector, many renters may continue to face difficult choices as costs rise across more parts of the UK.