Nottingham has seen the highest percentage rise in rent compared to anywhere else in the country - with a controversial licensing scheme being blamed for the hike.

A research team at Zoopla has created a detailed insight into the UK's housing market and found that Nottingham has experienced the highest year on year rise.

Rental growth in Nottingham has risen from 4.3 percent to 5.4 percent over the space of a year with the average rent being £661.

The percentage rise is higher than Leeds, Bristol, Leicester, Derby, York, Brighton, Liverpool and Sheffield, but this does not mean tenants pay more in Nottingham compared to other cities.

However, the city is mid-table for the amount of earnings spent on rent, with a single earner in the city likely to spend 26.9 percent of their pay on their property.

In London, the figure is 44.4 percent, which is the highest.

Giles Inman, business development manager for East Midlands Property Owners Ltd
Giles Inman, business development manager for East Midlands Property Owners Ltd

Giles Inman, business development manager at East Midlands Property Owners Group based in Lenton, which represents around 600 landlords, said selective licensing had played a part.

Selective Licensing was introduced last August, with landlords claiming they would sell up or pass the extra costs onto their tenants.

Having a licence means the council can check properties are safe to rent and can crack down on bad landlords who leave properties in poor or unsafe conditions.


Around 32,000 properties need a licence, with those who refuse to apply facing fines of up to £30,000 or prosecution through the courts.

Around half of all rented properties have still not signed up to the scheme.

Concerns were raised at the time that only 'good' landlords would sign up and 'rogue' ones would not.

To obtain a licence, accredited landlords must pay £480 per property while non-accredited pay £780.

Generic picture of letting boards
Generic picture of letting boards

Mr Inman said: "There are lots of factors that are driving rent up and selective licensing is one of them. It has been a costly exercise for landlords across the city and they said additional costs would be passed on.

"Every landlord, and I speak to hundreds of them, they have all put their rents up since August last year. They have gone up because the costs have gone up. We are a business.

"It is bleak for the tenant because Nottingham is the eighth most deprived area in the country and we have the lowest levels of disposable income.

"We made it clear from the onset. Being in a city licensing scheme would result in higher rents."

Nottingham City Council said that rent rises are also an indication that there is a lot of investment happening in the city

Councillor Linda Woodings, Portfolio Holder for Housing and Planning at Nottingham City Council, said: "Despite this increase Nottingham remains one of the top 20 most affordable cities in the country and we are still only on a par with places like Leicester and Birmingham.

"We don’t believe that Selective Licensing has caused this rise and agree with Zoopla that a lack of availability in the market is increasing demand and meaning landlords don’t have to compete for tenants.

"Also, other areas that have selective licensing like Coventry and Middlesbrough, have in fact seen rents decrease.

"We have maintained that the Selective Licensing fee should not lead to landlords increasing rents.

"That the standard of housing expected is reasonable, that £300 lower fees are offered to accredited landlords and that, even those without accreditation paying £780, are only paying the equivalent of £3 per week over a 5 year period."

Councillor Linda Woodings, portfolio holder for housing at Nottingham City Council
Councillor Linda Woodings, portfolio holder for housing at Nottingham City Council

A spokesman for Zoopla said: "Our research found that rents are typically least affordable in areas that have seen growth in employment that is faster than the growth in housing supply, as well as towns and cities with a significant student population, and places with high house price to income ratios, which increases underlying demand for rental accommodation.

"At 5.4 percent, Nottingham has seen the highest rental growth in the past year, with Leeds and Bristol in second place, both at 4.5 percent."