New research claims that rents have increased across England (8.5%), Wales (8.5%), Scotland (7.6%) and Northern Ireland (9.9%) in the last 12 months.

The firm behind the research – LandlordBuyers – claims tenants should be spending 30% of their monthly salary on rent, but that many areas exceed that proportion in reality:

–       London = 53.4% of your salary on rent

–       South East = 37.5% of your salary on rent

–       South West = 36.5% of your salary on rent

–       East England = 35.9% of your salary on rent

–       Scotland = 32% of your salary on rent

–       West Midlands = 31.9% of your salary on rent

This is a contrast to the regions across the UK where you can be expected to pay under the 30% salary threshold on your monthly rent payments

–       North East = 24.7% of your salary on rent

–       Wales = 24.8% of your salary on rent

–       East Midlands = 27.3% of your salary on rent

–       Yorkshire = 27.8% of your salary on rent

–       North West = 29% of your salary on rent

A spokesperson for the firm says: “A North-South divide definitely still exists but the divide is tapering” and how that gap changes in future depends on various factors. 

“One will be landlords themselves: which ones decide to exit the market and where their rentals are geographically located. Buy-to-let professionals are holding their breath ahead of autumn’s Budget. If pockets of landlords, perhaps mainly in the South, decide to sell, we could see supply restricted, values rise and the gap widen again. 

“Conversely, if Labour gets to grips with levelling up, we may see the appeal of Northern towns surge, wages catch up with Southern counterparts and demand for property – both to buy and rent – increase. 

“House prices will play their part too. Stagnating property and rental values in the South have been blamed for the rental value slowdown, whereas house price growth in the North has been broadly strong. If this trend continues, we could see Northern values increase further and approach something more like rental equilibrium across the country.

“When it comes to the gap between average salaries and average rental prices, the figures show there’s still an imbalance. While the Office for National Statistics revealed wage growth was running at 5.1% over the three-months to the end of July 2024 – outpacing inflation at 2.2% – Goodlord found the average cost of a new rental home in England was 7% higher in August 2024, compared to the same point in 2023.”