Based on a study carried out by Zero Deposit, a financial service firm, Bristol residents have experienced a drastic increase in rent prices since 2018. Today, they are paying a staggering 41% more compared to five years ago. The research focused on rent changes throughout England and discovered that the cost of renting in Bristol has touched an average of £1,513, a significant increase from £1,074 in 2018.
To put this into perspective, the national average rent now stands at £960, which has increased by just 13.7% in the corresponding period. This rise, as the report pins down, is primarily due to inflationary pressures influencing energy costs and mortgages, compounded by an insufficient rental supply to match an escalating demand from people relocating to the city.
The Impact: Tenants Struggle with Rental Affordability
Sam Reynolds, the CEO of Zero Deposit, stressed the financial strain this surge has put on tenants, not only in Bristol but also in other cities, like Liverpool. According to Reynolds, this struggle with rental affordability pervades even those areas where rents have decreased – securing a property in these parts is still a costly affair.
Reynolds further elaborated that the property market over the past years has been significantly impacted by surging energy costs and climbing mortgage rates. An insufficient supply to meet increasing demand has exacerbated the situation, pushing prices up in regions previously considered affordable.
Other Rising Stars: Cities with Rapid Rent Growth
According to the study, Bristol isn’t alone in observing soaring rents over the past five years. Cities like Gloucester, Mendip, Liverpool, and Norwich have witnessed rental increases over 30%, making them some of the fastest-growing regions in England.
Gloucester renters have seen their rents surge by 38.2% (now £861 per month), while in Mendip, the increase has been 33.6% (now £922 per month). Liverpool and Norwich follow suit, with rents climbing up by 33.1% (now £775 per month) and 31.9% (now £866 per month), respectively.
A Balancing Act: Falling Rents in Affluent Regions
Contrary to the trend, certain areas, particularly in Surrey and London, known for their expensive rents, have recorded a decrease, or at best, stagnation in rents. The biggest fall in rent prices was seen in Elmbridge, Surrey, with a -21.6% drop, although the area still ranks as one of the priciest at £1,554 per month. Meanwhile, west Surrey’s Guildford saw a modest decrease in rents by -3.8%, making the average rent £1,265.
Despite the slight downward trend in areas, London continues to hold the highest average rent across all regions in England, with the average monthly cost pegged at £1,697. However, four areas in London, namely, the City of London, Richmond upon Thames, Kensington, Chelsea, and Brent have seen rents decline by -8.1%, -6.5%, -3.9% and -2.9%, respectively.
This detailed insight into the current property market can greatly assist potential investors in deciding their next moves. It emphasises the importance of understanding regional trends and market changes, which is critical for making profitable property investments.