New-build homes are commanding up to 18% more in rent than older stock across England, according to a new report from tenant referencing and lettings firm FCC Paragon. The analysis, based on over 109,000 live rental listings, shows that modern properties aren’t just in demand — they’re powering higher rents and stronger returns for landlords who invest in new-builds or recently refurbished units.
With energy bills biting and tenant expectations rising, the report’s findings underscore a clear trend: renters are willing to pay a premium for newer, more efficient, and lower-maintenance homes. For landlords, that means opportunities to boost yields without compromising on tenant quality.
Premium locations drive rental value
Nationally, the average rent across all property types is £1,419 per month, but modern homes — defined as newly built or extensively updated — are letting for an average of £1,578. That’s an 11.2% uplift, or £159 more per month, with some regions commanding much higher premiums.
The East of England leads the table, where tenants are paying 17.7% above average to secure a newer property. The North West follows closely at 17.2%, then the North East (15.7%), London (14.8%), and the South East (11.9%).
“Modern properties provide all of the same benefits to renters that they do homebuyers, and as such they tend to be highly sought after,” said Bekki Leaves, Managing Director of FCC Paragon. She added: “We can also point towards the prime locations of many modern developments, from marinas and riverfronts through to the beating heart of city centres, to explain why renters are willing to pay more.”
For landlords with units in mixed-use city-centre schemes or commuter belt new-builds, this is good news — particularly as younger professionals and families prioritise EPC ratings, parking, and connectivity over square footage alone.
Modern stock accounts for growing market share
It’s not just about price — supply is also shifting. According to FCC Paragon’s figures, modern homes now make up 41.5% of all available rentals in England, with London hosting the highest proportion (47.1%) followed by Yorkshire & Humber (40.3%), the West Midlands (40.2%), and the North West (39.6%).
That may reflect a growing number of build-to-rent schemes, smaller developer-led projects, and landlords snapping up new-builds using off-plan finance — a model increasingly common in cities like Manchester, Birmingham, Leeds and even Norwich.
For landlords, this marks a clear shift: older properties with high retrofit costs and EPC liabilities are steadily being outcompeted by cleaner, greener, and tenant-friendly alternatives. Even mid-range developments are gaining traction if they feature things like secure cycle storage, EV charging, energy-efficient lighting and modern appliances.
Long-term appeal without the maintenance headache
From a landlord’s perspective, newer properties offer obvious operational advantages. With warranty cover, fewer repairs, and often lower insurance premiums, the long-term costs are easier to predict — a key benefit in a lettings environment already complicated by tax changes, EPC regulations and growing compliance.
Northampton-based landlord James Wetherall, who let his three-bed new-build townhouse within two days of listing, agrees. “The tenants were happy to pay £100 more than comparable older properties nearby. They liked the open-plan kitchen, but it was really the EPC A rating that won them over — their bills are next to nothing. I’ve had no repairs in two years, either. I wish I had ten more just like it.”
While some predict that the rent premium for modern homes will level off, FCC Paragon says this isn’t guaranteed. “Given the amount of new developments popping up across the country… their price premium will inevitably start to level off,” said Leaves. But in undersupplied markets, newer homes may continue to outperform, especially where tenants are willing to pay for peace of mind and efficiency.