The rental market in England has seen a dramatic shift, with the gap between rental prices in the South and the North narrowing to just 37%, or £357 per month—the smallest difference since tracking began in 2013, according to the latest Asking Price Index from Hamptons. This shrinking divide marks a substantial change from the 43% gap reported in August 2023, and an even more striking drop from the 55% peak seen in November 2021.

In the South of England, rental growth has significantly decelerated, falling from 8.7% last year to just 5.0% now. Meanwhile, rents in the North have continued their upward trajectory, climbing by 9.6% year-on-year, a pace that remains consistent with last year's growth. Across Great Britain as a whole, rental price growth slowed to 5.0% in August, the lowest rate of increase since August 2021.

Over the last half-decade, renters across the country have felt the pinch, with average rents rising by a hefty 34%, translating to an additional £349 per month. However, when adjusted for inflation, the real growth in rents sits at a more modest 10%. In some areas, such as Wales, the story is quite different—real-term rents have actually fallen by 5%.

Aneisha Beveridge, head of research at Hamptons, explained: “Much like house prices, the rental North-South divide has been closing for the last five years. The narrowing reflects the cyclical nature of the housing market, with house prices in the North of England rising 31%, nearly double the Southern rate. These figures have been mirrored in the rental market, with rents in the North of England quickly playing catch up.”

Beveridge also highlighted the burden faced by Southern tenants: “While tenants in the South have seen weaker growth in percentage terms, they’ve faced big cash increases. A 10% rise in Southern rents costs tenants £1,581 a year, £428 more than for a tenant in the North.”

The rental market landscape is clearly evolving, with the once stark North-South divide softening. Tenants in the North are seeing their rents catch up, but for those in the South, even smaller percentage increases can hit their wallets hard, highlighting the growing complexity of regional rental dynamics across the country.