Scotland, not London, records the widest proportional rental market divide in Britain, according to research from lettings and estate agent Benham and Reeves.
The firm analysed average monthly rents across British regions, identifying the most and least expensive local market in each and measuring the gap both in cash and as a percentage of the lower figure.
Scotland came out on top. Average rents in Lothian currently stand at £1,415 per month, compared with £554 in Dumfries and Galloway, a monthly difference of £861 and a proportional divide of 155.4%.
The South West ranks second. Bath and North East Somerset averages £1,881 per month against £788 in Torridge, placing the top end of the regional market 138.7% above the bottom, a cash gap of £1,093.
London places third on a proportional basis, though it records the largest gap in pounds and pence by a considerable margin. Kensington and Chelsea, the most expensive location analysed across Britain, averages £3,629 per month. The cheapest London borough in the dataset, Bexley, comes in at £1,534, making the capital's top market 136.6% more expensive than its lowest, a monthly difference of £2,095 or £25,140 over a year.
Seven regions in total record a proportional divide exceeding 100%. The East of England ranks fourth, where St Albans rents of £1,931 are 129.9% above those in East Suffolk (£840), a difference of £1,091. The North West follows with Trafford at £1,367 sitting 117.7% above Burnley's £628 average.
Newcastle upon Tyne comes in at 117.1% more expensive than Hartlepool in the North East, and Oxford's average rent is 106.9% above the Isle of Wight, placing the South East seventh.
Elsewhere, the divide between the highest and lowest local markets stands at 88.5% across Yorkshire and the Humber, 87.9% in Wales and 78.5% in the West Midlands. The East Midlands records the narrowest regional gap in the study, though rents in West Northamptonshire are still 54.2% above those in East Lindsey.
"London is, of course, in a league of its own when it comes to the actual pounds and pence paid by tenants, and a difference of more than £2,000 per month between the capital's most and least expensive rental markets demonstrates just how diverse London itself can be," said Marc von Grundherr, director of Benham and Reeves.
"However, what is particularly interesting is that London doesn't have the greatest proportional divide. Scotland takes that title, while the South West also ranks ahead of the capital.
"It demonstrates why broad regional rental averages only ever tell part of the story. Tenant demand, available rental stock, employment opportunities, transport links, lifestyle and the type and quality of homes available can vary enormously from one location to the next, and rental values vary accordingly.
"We see exactly the same dynamic within London. A tenant looking for a home in Kensington and Chelsea is operating within a very different market to someone searching in Bexley, despite both technically renting within the same region.
"For landlords, understanding these local market dynamics is fundamental. The highest headline rent doesn't necessarily equate to the strongest investment opportunity and what really matters is the relationship between the price paid for a property, the rent it can command and, most importantly, the depth and consistency of tenant demand.
"This is why successful landlords tend to take a far more granular view of the market, focusing on the fundamentals of an individual area rather than being distracted by broad regional averages."
