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A key factor when considering renting a property as a tenant or purchasing a rental property as a landlord is the rental value, which can vary hugely by region. So which region in the UK has the cheapest rent?

With nine regions to choose from in England, the choice can be daunting. The overall average monthly rent in England is £985, and it comes as no surprise that London is the most expensive with an average monthly rent of £1653. Persistently high house prices and rents drive people out of London to the regions in search of better and cheaper housing. More and more younger people are renting property but find that their rental payments in the more expensive regions take up an undesirably large proportion of their monthly income.

Nine out of ten of the areas with the lowest rents are in the North of England, with the Midlands area of Stoke on Trent making up the tenth. The most expensive areas are overwhelmingly situated in the South of England, with only the Scottish city of Edinburgh as the exception. 

The region with the cheapest average rent of just £546 per month is the North East of England. (Taken from HomeLet Rental Index for August 2020).

The North East covers County Durham, Northumberland, Tyne and Wear and the area formerly known as Cleveland in North Yorkshire. The region includes the three major cities of Newcastle upon Tyne, home to the third-largest port in the country, Durham and Middlesbrough and the larger towns of Barnard Castle, Darlington, Gateshead, Hartlepool, South Shields and Stockton-on-Tees.

Not only is the region renowned for its attractions such as the Angel of the North, and the World Heritage Sites of Durham Cathedral, Durham Castle and Hadrian’s Wall, but for its beautiful countryside with many delightful villages and rugged yet enchanting coastline. Ideal for both the younger and older generations, with a growing economy and idyllic life to retreat and retire to.

Although once seen as one of the poorest regions, following steady investment it has successfully transformed over the past twenty years resulting in a growing economy. With over 67,000 companies in the region, a population of 2.6 million and one of the world’s leading universities, Durham, the North East is a strong contender for those looking to invest in the rental market.

As a landlord, rental property offers a wealth of benefits whether it be in the residential, commercial or hospitality sectors and choosing the right location for your property rental investment is key. You need a good return on your investment and a steady supply of tenant demand. Lower rents do not translate into lower returns for landlords because in the regions with lower rent it is also cheaper to buy property. This in turn gives landlords the benefit of lower capital outlays and reduced mortgage repayments, increasing overall yields, and of course, any void periods will have a lower impact overall. The North East region could potentially unlock the door to an ideal investment opportunity with lower house prices and cheaper rents, plus a wealth of tenants looking for property.

Cheaper rent can be a huge attraction to tenants, providing the possibility to release equity and/or acquire a larger property with more space. If it is more space you need, perhaps a bigger garden or simply a better quality of living then the North East may be the answer. Even moving to a cheaper area within the same town or city can provide many benefits to tenants and it is no surprise that rental properties often make up a higher proportion of housing overall in the less expensive residential areas.

Whatever the location, property type, or rental value, it is imperative to manage the rental agreement correctly for a successful and profitable tenancy. On hand providing vital support, training and guidance from moving in, to moving out is InventoryBase – we provide the tools that provides vital management & inventory software to landlords and managing agents at a click of a button.

Keeping on top of essential property checks helps protect the value of a landlord’s investment by allowing any repairs to be attended to before they become a bigger issue, and effective inventory reports help avoid disputes on checkout as to liability for damage. InventoryBase makes keeping the necessary records simple and straightforward.

For more information and guidance for landlords, please refer to our Blog where we have a handful of articles to assist in all things renting.

Additionally, if you are interested in outsourcing and getting a professional property inspection conducted, InventoryBase Workstreams enables property managers to outsource property reports to professional inventory providers around the UK, vetted by InventoryBase.