In 2024, the landscape of rental affordability across the UK presents both challenges and opportunities for those seeking a new place to call home. With the average rental price reaching £1,223, marking a 7.8% increase from the previous year, the quest for cost-effective living spaces has become more crucial than ever.

This rise represents the smallest increase in two years, signalling a slight cooling in the rental market's fervour. Despite a 20% drop in demand and a corresponding increase in supply over the past year, rental costs are anticipated to continue their upward trajectory, albeit at a slower pace. The persistently high demand, now double what it was pre-pandemic, contrasts with a rental home supply that lags 28% behind pre-pandemic levels.

Amid these dynamics, certain UK regions emerge as beacons of affordability. The North East stands out with its exceptionally low average rent of £695 per month, making it an attractive option for budget-conscious renters. This region is notably the only one where rental averages do not exceed £1,000 per month. Northern Ireland, Scotland, Yorkshire and the Humber, and the North West also offer more affordable renting options, with average rents starting the year under £800 per month.

Conversely, the South of England exhibits higher rental prices, with London at the pinnacle, boasting an average rent of £2,121 per month—nearly double that of other regions. Despite experiencing the most significant slowdown in rental price increases, London's cost of living remains steep for many. The South East and East of England follow, with significant portions of their rental markets exceeding the £1,000 per month threshold.

In the realm of UK cities, the variance in rental costs is striking. Burnley, Grimsby, and Hull present the lowest city rents, while Brighton, Oxford, and London top the list as the most expensive. Cities like Liverpool, Sheffield, Newcastle, Swansea, and Plymouth offer surprisingly affordable rents, appealing to students and young professionals. In Scotland, Glasgow provides an economical urban living option, whereas Edinburgh's average rent soars to £1,263 per month, reflecting the diverse rental market across the UK.

Written by Veera Josey, 25th March 2024

Source: Zoopla