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In recent years, the United Kingdom has witnessed a significant disparity in rent increases, with those living in the most deprived areas experiencing a 52% surge over the past four years, compared to a 29% increase for tenants in wealthier regions, according to a nationwide study.

The data, analyzed by estate agent Hamptons and shared exclusively with The Observer, exposes a concerning trend.

In 2019, residents in the most deprived regions were paying an average monthly rent of £499, but by 2023, that figure has jumped to £759. Meanwhile, individuals renting properties in the UK's most prosperous districts saw their average monthly rent rise from £1,078 in 2019 to £1,387 this year.

Polly Neate, Chief Executive of Shelter, expressed concern over the situation, stating, "The private rental sector is creaking under the weight of demand as rents spiral out of reach of local incomes and tenants are pitted against each other for a limited supply of homes."

Mortgage increases push rents up

Hamptons' analysis indicates that landlord-deprived areas rely more heavily on mortgage finance than their wealthier counterparts, which is contributing to the escalating costs.

With interest rates surging from 1.75% in August 2022 to 5.25% today, some landlords are passing on these increased expenses to renters, resulting in a typical £97 monthly rent hike for tenants in deprived districts since 2022.

"Over the past couple of years, more people have wanted to live in cities, where areas of high deprivation are concentrated. Financial pressures have pushed many renters into relatively cheaper areas of cities to find an affordable home, and the effect has been to push up rents for those people already living there," Dan Wilson Craw, Deputy Chief Executive of Generation Rent explained.

These findings underscore how Britain's ongoing housing crisis, combined with the escalating cost of living, is straining household incomes, affecting renters disproportionately in accordance with their wealth. Renters already bear a higher risk of living in poverty, with a third of private tenants, amounting to around 4.2 million people, experiencing poverty, driven by the combination of high housing costs and low incomes. Nearly half of private renters living in poverty attribute their situation to increased housing costs.

Among the most deprived regions in the UK, Linthouse in Glasgow, Scotland, witnessed the most significant percentage rise in rental costs, soaring by 65% from £597 in 2019 to £985 in 2023.

In stark contrast, the wealthier Ascot in the Berkshire area experienced a lower percentage increase, with monthly rents climbing from £3,224 in 2019 to £4,163 in 2023, an increase of 29%.

Read more: Over half of UK houses did not turn on heating during winter: Study

Households take up debt to pay rent

The issue of high costs and low incomes is also leading to problem debt, as 20% of low-income households are taking on new debt to cover rent and energy expenses, according to data from the Joseph Rowntree Foundation.

The human impact of rising rents is evident in the story of Esther Planas, an artist residing in Hackney, East London, since the late 1990s. Planas recently received notice from her landlord that her monthly rent would rise from £1,175 to £1,620, a substantial hike she cannot afford.

"It’s a huge amount of money. I live in a vulnerable and precarious context as an artist. My income is from selling my work, teaching, lecturing, and grants. I considered becoming officially homeless and getting help from the council, but the waiting list is years long."

Planas has faced eviction due to rising rents in the past when Hackney, which housed her studio, was turned into a VIP area by investors. 

"I feel anxious, I have trouble sleeping. Everywhere I look is £1,300 or £1,400 a month, but mostly, £1,500, £1,600, or £1,700, even outside Hackney. It is impossible."

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