UK Cities Where Rents Are Rising as House Prices Fall, According to Trade Door Handles Research 

TCMP

Bath has emerged as the leading location in new research identifying UK areas where rents are rising while house prices are falling or remaining broadly unchanged. 

Research by Trade Door Handles has identified 11 UK local authorities where rental growth is outpacing house price movements, with Bath and North East Somerset ranked first. 

The study examined more than 300 UK local authorities using Office for National Statistics and HM Land Registry data. It compared annual changes in rents and house prices and also considered local earnings to assess the proportion of a typical salary being spent on rent. 

Bath is followed in the ranking by Tunbridge Wells, Oxford, Lincoln and Salford. 

The findings come at a time when renters across Britain are facing continued pressure from housing costs, while house price growth has slowed in several parts of the country. 

The UK areas where rents are rising as house prices fall 

Trade Door Handles ranked the areas according to the difference between annual rental growth and house price movement. 

Source: Trade Door Handles, using ONS and HM Land Registry data. 

Trade Door Handles describes the study as a top 10 ranking, although the research supplied to TCMP contains 11 local authorities. 

Bath tops the ranking 

Bath and North East Somerset records the largest gap between rental growth and house price movement in the research. 

According to Trade Door Handles, average monthly rent has reached £1,882, following an increase of almost 8% over the year. The average house price is put at £404,480. 

The research estimates that annual rent accounts for 69.5% of a typical local salary, while the house price to earnings ratio stands at 12.5 times. 

Trade Door Handles describes Bath as the strongest location in its research for renters considering a move into home ownership. 

The figures also highlight a wider affordability problem. 

For households that already have access to a deposit, a market where rents are rising while house prices remain broadly stable could present an opportunity. 

For renters struggling to save, however, higher monthly rent can make the move into home ownership more difficult. 

Tunbridge Wells follows 

Tunbridge Wells ranks second, with a 7.513 percentage point difference between rental growth and house price movement. 

Trade Door Handles reports that rents have increased by 4.5%, while house prices have fallen by 3%. 

Average monthly rent is £1,521 and the average house price is £445,130. 

The research suggests that the combination of rising rents and falling property prices could make the market more attractive to prospective buyers who already have a deposit available. 

Oxford combines high rents with falling house prices 

Oxford ranks third in the Trade Door Handles research. 

The study puts average monthly rent at £1,961, following rental growth of almost 6% over the year. It estimates that rent accounts for 64% of a typical local salary. 

At the same time, the average house price is put at £466,820, following a 0.9% annual decline. 

Oxford therefore presents one of the clearest examples of the trend identified by the research: renters are facing higher housing costs while property prices are moving in the opposite direction. 

The high average house price means buying remains a significant financial commitment, despite the reported decline. 

Lincoln offers a different picture 

Lincoln ranks fourth, but stands apart from the more expensive markets near the top of the list. 

Trade Door Handles puts the average house price at £183,300, the lowest figure among the 11 locations in the ranking. 

Average monthly rent is £948, while rents have increased by more than 6%. 

The research estimates that rent accounts for 38% of a typical local income. 

The lower property price could make Lincoln more accessible to prospective first-time buyers than some of the other locations in the ranking. 

It also demonstrates why rental growth and house prices need to be considered together with local earnings. 

A rise in rent does not necessarily mean a market is becoming more attractive to buyers if property prices remain beyond the reach of local households. 

Salford is the only northern location in the top five 

Salford ranks fifth and is the only northern location in the top five. 

According to Trade Door Handles, rents increased by almost 4%, taking average monthly rent to £1,164. 

House prices fell by 2.4%, bringing the average property price to £231,890. 

That places Salford in a substantially different price bracket from Bath, Tunbridge Wells and Oxford. 

For renters who have already accumulated a deposit, falling prices could improve their buying position. For those without sufficient savings, the continuing rise in rents remains a challenge. 

What the research means for renters 

The Trade Door Handles findings point to a changing calculation for people deciding whether to continue renting or attempt to buy. 

When rents rise while house prices fall or remain broadly stable, the relative cost of renting can become more significant. 

However, that does not mean buying is automatically the better option for every tenant. 

The main barrier remains affordability. 

A prospective buyer needs enough savings for a deposit, sufficient income to qualify for a mortgage and enough financial capacity to cover the wider costs of home ownership. 

This is particularly important in places such as Bath and Oxford, where average house prices remain high despite the reported slowdown or decline. 

The contrast with Lincoln is significant. A substantially lower average property price could make the transition from renting to owning more achievable for some households. 

Rental supply could add further pressure 

A home expert from Trade Door Handles said the pressure on renters could continue as the supply of rental properties remains constrained. 

“Rents are not going to stop climbing any time soon. There are already 3% fewer rental homes available than there were a year ago, and each listing is getting more than five enquiries on average. That kind of competition keeps pushing prices up.” 

The expert also pointed to the Renters’ Rights Act and suggested that some landlords may reconsider remaining in the rental market. 

Trade Door Handles forecasts that rent increases could reach 4% to 5% by the end of the year and argues that continued rental pressure could push more tenants towards home ownership. 

These are the company’s assessments and forecasts as part of its research. 

The bigger housing question 

The research highlights an important shift in the housing market. 

For years, the central concern for prospective buyers was rapidly rising house prices. The current picture in some local markets is different. Rents are continuing to rise while house prices are falling or showing limited movement. 

That could create opportunities for people who are financially ready to buy. 

It does not remove the affordability challenge for those who are not. 

The difference is particularly clear across the locations in the ranking. An average home costing £183,300 in Lincoln represents a very different proposition from one costing £466,820 in Oxford or £471,100 in Cambridge. 

For renters, the key question is therefore not simply whether house prices are falling. 

It is whether they can afford to buy. 

That depends on income, savings, deposit requirements, mortgage costs and the price of homes in the local market. 

Trade Door Handles’ research identifies the places where the gap between rental and house price movements is widest. 

For renters considering the move into home ownership, the findings provide another measure to consider when weighing up whether continuing to rent makes sense. 

Research source: Trade Door Handles, using ONS and HM Land Registry data. 

Data credit: Trade Door Handles.