Renters in some of Britain’s cities are facing a squeeze as rents rise while house prices decline, potentially narrowing the gap between renting and buying a home, according to a September 2026 study based on official housing data.
Bath and North East Somerset recorded the largest gap between annual rental growth and house-price growth among the areas examined, with rents rising 7.84 percentage points faster than house prices, the study by Trade Door Handles found.
Average monthly rent in the area was £1,882, while the average house price was about £404,000, according to the study, which used data from Britain’s Office for National Statistics and HM Land Registry.
Tunbridge Wells ranked second, with a 7.51 percentage-point gap, followed by Oxford at 6.77 percentage points, Lincoln at 6.64 and Salford at 6.29.
The analysis examined more than 300 UK local authorities, comparing changes in rents and house prices over the previous year. It also calculated housing costs as a share of local earnings.
In Bath and North East Somerset, the average house price was £404,480 and the house-price-to-earnings ratio was 12.5 times, while annual rent represented 69.5% of local earnings, according to the study.
The figures illustrate the affordability pressures facing tenants, although a comparison between rent and house prices alone does not establish whether buying is financially preferable. Mortgage rates, deposits, taxes, maintenance costs and transaction expenses can materially affect the calculation.
In Oxford, average monthly rent reached £1,961, with annual rent equivalent to 64% of typical local earnings, according to the report. Average house prices fell 0.9% to about £466,820.
Oxford’s combination of high rents and expensive homes reflects broader affordability pressures in the city, where housing demand is supported by its universities and relatively high-paid employment.
Lincoln was the least expensive market among the five highest-ranked areas, with an average house price of £183,300 and monthly rent of £948. Rents increased by more than 6% while house prices edged lower, the study said.
Rent represented about 38% of typical local earnings in Lincoln, according to the report.
In Salford, rents increased by nearly 4% to an average £1,164 a month, while house prices fell 2.4% to about £231,890.
The wider list also included Chelmsford, Chichester, Milton Keynes, Colchester, Exeter and Cambridge. The supplied research, however, describes the ranking as a top 10 while listing 11 local authorities, including Cambridge.
Rank Area Rent-price gap Monthly rent Average house price
A home expert from Trade Door Handles told Impact Newswire the supply of rental properties remained under pressure.
“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 Renters’ Rights Act has also made some landlords think twice about staying in the market, which tightens supply even further. By the end of the year, rent rises could hit 4% to 5%, and in cities where rents are already stretching what people can afford, that extra pressure is going to push more renters toward buying whether they feel ready or not.”
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Mohd Hassan has extensive experience in news gathering, editing, and writing for the newswire industry, Contact – Info@impactnews-wire.com
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