The most expensive postcode in the country for renters covers the desirable commuter town of Beaconsfield in Buckinghamshire, where rents are dwarfing even the most exclusive areas of central London.
New research reveals that rents in the well-healed market town — 23 miles to the northwest of the capital — have reached £5,920 on average per month, pulled up by the prevalence of large family homes and country mansions on the outskirts.
Rent here costs £5,920 a month, eight per cent higher than in South Kensington and Knightsbridge (SW7), the second most expensive postcode in the country where tenants typically pay £5,438. Monthly rents are also 279 per cent higher than the average across the whole of the South East and 358 per cent higher than the national average.
There is a six-bedroom, detached, contemporary home in the village of Penn, on the outskirts of the town and the edge of the Chiltern Hills, with an eye-watering rental asking amount of £86,667 per calendar month.
The data by Cohab — a property portfolio platform — analysed postcode districts across Britain showing the most expensive postcode for renters by region. The priciest in the South West is TR11 in Cornwall, home to the sailing hub of Falmouth.
London rents hit 14th record high in a row
This research reveals the average rent per property and is therefore highest in areas where there is more space and bigger homes. If it had been based on price per square foot, central London would sit at the top of the price ranking.
In fact, analysis released this morning by Rightmove shows that rents in London have just hit a 14th consecutive record high to £2,698 — 2.5 per cent higher than this time last year. Although the rise in advertised rents this quarter compared to the last is marginal (an increase or 0.3 per cent or £3), the property website is still reporting rises despite an influx of rental stock onto the market in the capital and a slowdown in tenants vying for the same properties.
Analysts at Rightmove put this rebalancing of supply and demand down to the increased activity of tenants becoming first time buyers ahead of the stamp duty deadline at the start of April. In fact, there are eight would-be tenants competing for one home in London versus 18 in the North West.
“We have seen a strong start to the year with a surge in new listings entering the market, while tenant demand levels remain robust,” says Marc von Grundherr of Bentham & Reeves.
Dominic Agace, chief executive of Winkworth, thinks the slowdown was inevitable as rents hit affordability ceilings. “Tenants may be staying at one longer or might share for longer to avoid higher rents,” he says.
Could the Renters’ Rights Bill drive rents higher?
However, many estate agents expect the rise in available stock and slowdown in rental rises to be short lived. Marc von Grundherr says international tenants are back on the scene and the call back to the office is driving tenant demand too.
Richard Bryce, co-founder of the House Collective, describes the increase in stock levels as a lopsided recovery. “There is still nowhere near enough [choice of rental homes] to meet demand where it is most needed. The uncertainty around future regulations [the Renters’ Rights Bill] is only adding to the inertia, keeping landlords on edge and tenants rooted to the spot,” Bryce says.
The Renters’ Rights Bill is passing through Parliament this spring and is expected to come into force by the end of the year. It includes new laws such as the abolition of Section 21 evictions making it more difficult for landlords to kick tenants out through no fault of their own. The bill will also reduce discrimination when tenants are refused because they have children or are on benefits, and prevent landlords from being able to hike rents way above market inflation.
But both Bryce and Simon Welfare of Wilfords think the increased burden of regulation could have unintended consequences and is putting off investors who provide a steady stream of homes to let. “This means no significant new rental stock will be coming though. As a result, strong tenant demand combined with limited supply means rental prices will continue to edge upwards particularly as we move into the busiest season,” says Welfare.
