The difference in rent prices between the north and south of England is getting smaller, and it’s the closest it has been in over a decade! For the first time in 11 years, renters in the north are paying much closer to what their southern counterparts pay, according to new figures.

In August, the property company Hamptons published its latest monthly lettings index, revealing that the average rent in the north was £960 a month. This is a 9.6% increase compared to last year. Meanwhile, in the south, the average rent stood at £1,317 a month. The gap between what renters in the north and south pay has now shrunk to just 37% (£357), the smallest percentage since Hamptons started recording these figures back in 2013.

This narrowing gap is pretty significant. Just last year, the difference between rents in the north and south was 43%, and in 2021, it was even wider, reaching 55%. So, it’s clear that rents in the north have been catching up over the years.

Why Is the Rent Gap Shrinking?

Aneisha Beveridge, the head of research at Hamptons, explained that this trend of the rent gap narrowing has been going on for about five years. It’s not just happening in the rental market either; similar trends are being seen in the homebuying market.

Beveridge pointed out that it’s only in the last year that the gap has started to close more quickly. This is happening because rental prices in the south are growing more slowly, due to affordability pressures. In simple terms, people in the south are already paying so much for rent that prices can’t rise as fast as they once did.

Still, rents in the south have continued to go up, just at a slower rate. For instance, the average rent in the south increased by 5% compared to last year. Even though that’s slower than the north, it’s still a rise.

Where Is This Happening?

Hamptons defines the "north" as the areas including the North East, North West, and Yorkshire & Humber. On the other hand, the "south" includes London, the East of England, and the South East and South West regions.

Interestingly, in the north-east of England, rents have shot up the most, with a 12.1% increase compared to last year. London, however, saw the smallest rent increases, rising by just 2.1% year-on-year. This is a huge drop from the 17.1% rise London saw in August of last year.

But Wait, There's More!

Even though percentage-wise, the south has seen smaller increases, in real cash terms, renters there are still paying a lot more. Beveridge noted that while the percentage growth is smaller, people in the south are still facing big jumps in the amount they pay each month.

For example, in inner London, rents went up by 7.9% over the year, bringing the average rent to a staggering £3,318 a month. That’s £242 more than renters in the capital were paying last year. Meanwhile, in the Midlands, rents increased by 7.2%, which means tenants there are paying £66 more a month than they were last year.

What Does This Mean for Renters?

The shrinking gap between rents in the north and south could be a sign that the rental market is shifting. As rents in the north increase at a faster rate, it might make some southern renters consider moving to the north where rents are still, on average, cheaper.

At the same time, affordability pressures in the south are keeping rent increases in check. In other words, the high cost of living in southern England means that rents can’t go up as fast as they have in the past because people just can’t afford to pay much more.

Changes in Renters' Rights

While all this is happening, renters in England are also seeing some important changes to their rights. Last Thursday, the government introduced a new bill called the Renters Reform Bill. This bill includes some big changes for tenants. One of the most notable changes is the banning of "no-fault evictions." This means landlords won’t be able to kick tenants out without a good reason.

The bill also includes a ban on landlords renting out properties for more than what they advertise. So, if a landlord says the rent is a certain amount, they can’t suddenly raise it without warning.

However, not everyone is happy with these changes. The National Residential Landlords Association, which represents about 110,000 landlords, has said that the new bill could cause landlords to raise rents in some cases to cover the added restrictions.

What's Next for Renters?

As the rent gap continues to shrink, it will be interesting to see what happens next. Will renters in the north catch up to those in the south entirely? Or will rents in the south start rising faster again? For now, renters in both regions can expect to keep paying more each year, even if the rates of increase differ.

With the government’s new bill and changes to renters' rights, it’s clear that the rental market is in for some changes. Tenants should stay informed and know their rights, especially with new rules on evictions and rent pricing coming into play.

One thing’s for sure: whether you’re in the north or the south, renting in England is becoming more expensive year after year, and the gap between the two regions is shrinking faster than ever!