Tenants in a modern property face a rent price premium of up to 18% according to finance firm FCC Paragon.

Modern homes now account for some 40% of today’s rental market: of the estimated 109,727 live rental listings in England this week, 45,563 are classed as modern, equivalent to 41.5%.

London (47.1%) has the highest proportion of modern rental homes, followed by Yorkshire & Humber (40.3%), the West Midlands (40.2%), and North West (39.6%). Meanwhile, the lowest proportion of modern properties is located in the South West (32.1%).

FCC Paragon found that the average rent price in England currently stands at £1,419 per month, while the average price of a modern property is £1,578 per month. 

This is an average premium of £159 or 11.2%.

This premium is at its largest in the East of England where the average asking rent for a modern property,  £1,469 per month, is 17.7% above the general average.

The North West commands a modern property premium of 17.2% followed by the North East (15.7%), London (14.8%), and South East (11.9%).

An FCC Paragon spokesperson says: “Modern properties provide the same benefits to renters that they do homebuyers, and tend to be highly sought after. Because of this, prices [are] higher than your average rented property. 

“But we can also point towards the prime locations of many modern developments – from marinas and riverfronts to city centres – to explain why renters are willing to pay more.

“New-build rental homes are going to account for an increasingly large proportion of the market, which means their price premium will inevitably start to level off.”