UK Rental Prices in 2026: Why the North East Still Offers the Best Value for Renters and Investors

UK rental prices remain one of the most talked-about topics in the housing market. While the pace of rent increases has slowed compared to the post-pandemic surge, rents are still rising across most regions — and affordability continues to be a major concern for tenants nationwide.

However, when you look beyond national averages, one region continues to stand out from the rest.

Average Rental Prices Across the UK (2026)

When comparing rental costs across England and the wider UK, the gap between regions is striking:

• 🟢 North East – ~£695–£710 per month (lowest in England)

• 🔵 Yorkshire & Humber – ~£1,000

• 🔵 West Midlands – ~£900

• 🔵 East Anglia – ~£1,009

• 🔵 North West – ~£1,118

• 🔵 East Midlands – ~£1,100

• 🔵 South East – ~£1,148

• 🔵 South West – ~£1,200

• 🔴 London – £2,078+ per month

Despite national rent growth, the North East consistently remains the most affordable rental region in England — often costing £400–£1,300 per month less than southern regions.

Why the North East Rental Market Stands Out

Lower rents alone don’t tell the full story. The North East continues to outperform many regions due to a rare combination of affordability, demand, and yield potential.

1. Lower Rents, Strong Tenant Demand

With average rents below £750 per month in many areas, the North East remains highly accessible for:

• First-time renters

• Young professionals

• Families priced out of southern markets

At the same time, tenant demand remains strong, supported by:

• Local employment hubs

• Universities

• NHS and public sector jobs

• Ongoing inward migration from higher-cost regions

This balance helps reduce void periods and keeps properties competitively occupied.

2. Better Affordability Than the South

In regions like London and the South East, rental affordability is stretched to breaking point. In contrast, the North East benefits from:

• Lower rent-to-income ratios

• More sustainable rent levels

• Less reliance on dual incomes

This creates greater long-term stability for both tenants and landlords.

3. Strong Yields for Landlords

While rents are lower in absolute terms, property prices are also significantly lower, meaning:

• Higher gross rental yields

• Lower entry costs for buy-to-let investors

• Better cashflow resilience during market shifts

For many investors, the North East offers better returns with less exposure than higher-priced southern markets.

Are UK Rents Still Rising?

Yes — but not at the pace seen in recent years.

Most forecasts suggest UK rental growth will sit around 2%–3% annually through 2026, driven by:

• Continued housing undersupply

• Population growth

• Reduced levels of new rental stock

That said, regional performance varies sharply, and rent growth is increasingly becoming a local market story rather than a national one.

What This Means for Renters

For renters, especially those willing to relocate:

• The North East offers some of the lowest rents in England

• More choice and less competition than the South

• Better value for space and quality

As affordability pressures remain high elsewhere, the North East is likely to continue attracting demand from both local and relocating tenants.

What This Means for Landlords and Investors

For landlords, the market has shifted from rapid rent inflation to sustainable, long-term growth.

In the North East in particular:

• Rents remain competitive but stable

• Tenant demand is consistent

• Yields often outperform national averages

This makes the region especially attractive for:

• First-time buy-to-let investors

• Portfolio landlords seeking balance

• Investors prioritising cashflow over speculation

Final Thoughts: The North East’s Long-Term Advantage

While UK rental prices continue to rise, not all regions are equal.

The North East continues to offer:

• The lowest average rents in England

• Strong tenant demand

• Better affordability

• More resilient investment fundamentals

As national housing pressures persist, the North East is increasingly seen not just as a budget option — but as one of the smartest rental markets in the UK.