London Landlords Hit Affordability Wall as Northern Rents Surge Ahead - Lendlord Data Unveils £1,225 Gap

Business Insider

30-07-2025

London, UK, July 30th, 2025, FinanceWire
New data released today by Lendlord, the UK's leading property management and investment platform, reveals a stark and growing affordability gap between the capital and the North of England.
Lendlord's latest data shows Greater London landlords now charge an average of £1,959.78 per month, compared with just £732.55 per month in the North East - a staggering gap of £1,225. This divide highlights the capital's growing affordability crisis and contrasts sharply with the rental boom taking place across northern regions.
Key Findings from Lendlord Data
London affordability caps: London rents have surged by 7–8% year-on-year, but tenant affordability has hit a ceiling, with landlords increasingly facing pushback on further rises.
Northern uplift: Regions such as the North West, Yorkshire, and the North East continue to experience strong upward rental growth as demand outpaces supply.
Landlord sentiment: Over 59% of landlords expect to raise rents over the next 12 months, yet many are cautious in the face of ongoing regulatory reform and interest rate uncertainty.
Low vacancy rates: Nationally, landlords report very low vacancy levels, underscoring robust rental demand despite affordability pressures.
Aviram Shahar, Co-Founder and CEO of Lendlord, commented:
'Our data shows demand remains high, with very low vacancy rates across the board, and landlords are carefully monitoring the potential impact of regulatory change. The affordability ceiling in London is becoming increasingly apparent, with tenants less able to absorb sharp rent hikes. By contrast, the North continues to show strong upward momentum, buoyed by lower entry costs and sustained demand. Many landlords are taking a balanced approach - raising rents cautiously, protecting tenant relationships, and focusing on yield growth outside the capital.'
Shahar added that landlords are now reviewing their tenancy agreements and every contract for tenants more closely to ensure they reflect the rapidly changing market. 'In the current climate, reviewing tenancy agreements and contracts for tenants is essential. Clear terms not only protect landlords' investments but also give tenants the security they need."
Wider Market Implications
Landlords face a critical period of transition, driven by the upcoming Renters' Rights Bill reshaping tenancy contract requirements and shifting mortgage affordability tests. With anticipated interest rate drops poised to reshape financing strategies, the bridge lending game is intensifying – prompting market observers to watch closely whether current rental price rises can be sustained over the next 12 months.
London's affordability wall could drive further investment towards northern regions, where yields are more resilient and capital growth potential remains strong. Bridge lending could play a key role in facilitating this regional pivot for landlords needing speed and flexibility in acquisitions.
Full report available here:
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