Northern Rental Markets Continue to Climb as UK Rents Rise Again
UK property rental prices increased again in April, reinforcing the growing pressure facing tenants across the private rented sector and highlighting the continued imbalance between supply and demand in many parts of the country.
According to the latest HomeLet Rental Index, average UK rents climbed to £1,325 per month in April, representing a 1.1% increase from March and a 2.1% rise compared with the same period last year. Outside Greater London, average monthly rents reached £1,135, while rents in the capital rose to £2,128 per month.
Although rental growth has slowed compared with the sharp increases seen during the post-pandemic period, the latest figures show that upward pressure on rents remains firmly in place across much of the UK housing market.
Tenant Demand Remains Strong Across the UK
One of the biggest factors continuing to support rental growth is the ongoing imbalance between tenant demand and available housing supply.
Despite wider economic uncertainty, higher mortgage rates, and increased living costs, demand for rental properties remains strong across many regions. At the same time, the number of available rental homes remains limited, creating continued competition among tenants and allowing landlords to maintain higher asking rents.
This supply shortage has become one of the defining features of the UK rental market over the past several years.
Many prospective first-time buyers are delaying purchases due to affordability pressures and elevated mortgage costs, keeping more people in the rental sector for longer.
Rental demand across many northern regions continues to remain extremely resilient. While affordability pressures are clearly affecting tenants nationwide, strong demand and limited supply are still supporting rental growth in many regional markets. Investors are increasingly prioritising areas where lower entry prices and stronger yields create better long-term opportunities
Northern Regions Continue to Perform Strongly
Several regional markets recorded particularly strong rental growth during April, with northern regions once again outperforming many southern areas.
The North West saw average rents rise to £1,091 per month, representing annual growth of 2.7%. Yorkshire and Humberside also posted strong growth of 2.5%, while the West Midlands continued to see steady increases, with average monthly rents reaching £1,043.
These regions continue to attract strong tenant demand due to a combination of affordability, local employment growth, and comparatively lower housing costs.
Cities such as Manchester, Liverpool, Leeds, Sheffield, and Newcastle continue to benefit from growing student populations, expanding regional economies, and major regeneration projects.
London Remains the Most Expensive Rental Market
London continues to be the UK’s most expensive rental market by a significant margin.
Average rents in the capital rose to £2,128 per month in April, highlighting the ongoing affordability challenges facing tenants across London boroughs.
While rental growth in London has moderated compared with previous years, demand remains consistently high due to limited housing supply and continued population demand.
Rental Supply Challenges Continue
One of the key issues affecting the rental market is the continued lack of available housing stock.
A combination of regulatory changes, higher borrowing costs, rising maintenance expenses, and tax pressures has encouraged some landlords to exit the market in recent years.
This imbalance continues to place upward pressure on rental prices across many parts of the country.
The View from Find UK Property
At Find UK Property, we continue to see investors focusing heavily on affordable regional markets where rental demand remains resilient and long-term yields remain attractive.
Commenting on the latest figures, Asma Naureen, Head of Lettings at Find UK Property, said:
“Rental demand across many northern regions continues to remain extremely resilient. While affordability pressures are clearly affecting tenants nationwide, strong demand and limited supply are still supporting rental growth in many regional markets. Investors are increasingly prioritising areas where lower entry prices and stronger yields create better long-term opportunities.”
Outlook for the Rest of 2026
Although rental growth has moderated compared with the sharp increases recorded during 2022 and 2023, the overall direction of travel remains upward.
Demand for rental accommodation continues to outpace supply in many parts of the UK, and affordability pressures are likely to keep more households within the rental sector for longer.
Unless housing supply improves significantly, rents are expected to remain under pressure throughout much of 2026.
