Rabensteiner, Thomas ORCID: https://orcid.org/0000-0001-9289-3579 and Hasenberger, Hannah (2026) Do renters In deprived neighbourhoods pay more? Rental yields and the poverty penalty: evidence from England and Wales. [Working Paper] (doi:10.2139/ssrn.7497881)

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Abstract

This article examines whether renters in deprived neighbourhoods face a poverty penalty in private rental markets. Using a new dwelling-level dataset, linked to granular deprivation data across more than 35,000 neighbourhoods in England and Wales, we estimate the relationship between rental yields–measured as annual rent as a share of property values–and neighbourhood deprivation. We reveal that rental yields are significantly higher in deprived neighbourhoods; tenants in these areas pay more relative to the value of the homes they occupy. To investigate the mechanisms behind this finding, we control for landlord risk factors and capital gains and find that they are associated with yields in theoretically expected directions, but the deprivation-yield gradient persists even after accounting for these factors. We further show that yields are higher where access to social housing is scarce. Taken together, our analysis provides new evidence for a poverty penalty in private rental markets.

Item Type:	Working Paper
Uncontrolled Keywords:	housing, private rental market, deprivation, poverty penalty, rental yields, housing inequality
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce > HF5601 Accounting
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) Journal of Economic Literature Classification > Political Economy, Governance, Finance and Accountability (PEGFA) Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) > Greenwich Political Economy Research Centre (GPERC) Journal of Economic Literature Classification > Political Economy, Governance, Finance and Accountability (PEGFA) > Greenwich Political Economy Research Centre (GPERC) Journal of Economic Literature Classification > Greenwich Political Economy Research Centre (GPERC) Greenwich Business School > School of Accounting, Finance and Economics
Last Modified:	02 Nov 2026 16:13
URI:	https://gala.gre.ac.uk/id/eprint/54524

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