St Albans Crowned Most Expensive City to Rent, While Carlisle Offers Bargains

New data from property website Rightmove has revealed a significant gap in rental prices across Britain, with St Albans emerging as the priciest city outside of London. Tenants in this Hertfordshire hotspot are now paying an eye-watering average of £2,307 per month – that’s 71% above the national average!

At the other end of the spectrum, Carlisle in Cumbria offers the most affordable rents in Great Britain, with an average monthly cost of just £791, a significant 41% below the national average.

This news comes as students across the country gear up for the new academic year, facing increasing competition for rental properties in university cities. The average advertised rent outside London has reached a record high of £1,349 per month, although the annual growth rate has eased slightly from its peak of 12% in 2022, now standing at 5%.

Expert Insight: Rental Growth Impacts Students and Graduates

Rightmove’s property expert Tim Bannister highlights the growing rental divide across Britain, stating: “The average difference of just over £1,500 between the most expensive and cheapest cities is stark. Many of these cities have experienced rental growth of over 40% in the past five years, making it a crucial factor for students deciding where to study and graduates considering job opportunities in their chosen city.”

City Spotlight: The Most Expensive Rental Markets

Southern Cities Dominate the Top Spots

The data reveals a clear trend, with cities in the South East and East of England dominating the list of most expensive rental locations:

• St Albans (East of England): £2,307 per month (33% increase over 5 years)
• Oxford (South East): £2,237 per month (41% increase over 5 years)
• Cambridge (East of England): £2,072 per month (40% increase over 5 years)
• Winchester (South East): £2,049 per month (31% increase over 5 years)
• Brighton (South East): £2,040 per month (33% increase over 5 years)

Other notable cities with high rental costs include Edinburgh, Bristol, Chelmsford, Milton Keynes, and Southend-on-Sea.

City Spotlight: Where to Find Rental Bargains

Northern Cities and Wales Offer Lower Rents

For those seeking more affordable rental options, cities in the North of England and Wales offer significantly lower prices:

• Carlisle (North West): £791 per month (47% increase over 5 years)
• Hull (Yorkshire and The Humber): £804 per month (36% increase over 5 years)
• Sunderland (North East): £807 per month (37% increase over 5 years)
• Stoke-on-Trent (West Midlands): £863 per month (48% increase over 5 years)
• Wrexham (Wales): £874 per month (48% increase over 5 years)

Bradford, Preston, Doncaster, Lancaster, and Wakefield also feature among the cheapest cities to rent.

Investor Takeaway: Opportunities and Challenges

Strong Rental Growth in Many Cities Presents Opportunities for Landlords

The data highlights strong rental growth in many cities across Britain, particularly in the South East and East of England, presenting attractive opportunities for landlords and property investors. However, potential investors should also consider the affordability challenges faced by tenants in these high-cost areas.

Northern Cities Offer Potential for High Yields

Cities with lower rental costs, such as those in the North of England and Wales, may offer higher rental yields for investors, although capital growth potential might be lower compared to the more expensive areas.

Student Rentals Remain a Lucrative Market

The continued demand for student accommodation in university cities presents a specific niche for investors looking for reliable rental income.

Conclusion:

The rental market in Britain continues to evolve, with a clear divide between the most and least expensive cities. Landlords and property investors should carefully analyse local market trends and rental yields before making investment decisions. With careful planning and research, there are opportunities to be found across the country.