Britain’s rental market is witnessing rising costs nationwide, according to the latest data from Rightmove’s Rental Trends Tracker.
These figures reveal a complex and evolving landscape marked by rising prices, cautious landlord activity, and increasing affordability pressures on tenants.
In London, the average advertised rent now stands at £2,736 per month, marking a 1.6% increase from the previous year.
Though this growth rate is relatively modest historically, it underscores the ongoing upward pressure on rents in the capital.
Outside London, rents have risen by 3.1% over the past year to a new record of £1,385 per month.
This represents the smallest jump in rent since 2020, signalling a deceleration in rental price growth — but not a reversal.
And rent inflation varies considerably across regions.
Rental prices in northwest England, for example, are up 5.1% year-on-year, averaging £1,241. Yorkshire and the Humber have seen a 4.1% rise to about £1,093.
London and Scotland saw the smallest increases, both at 1.6%.
Challenges for tenants
Rising rents are contributing to a significant squeeze on household finances.
Rightmove says the proportion of the average wage dedicated to rent has climbed to 44%, up from 40% five years ago, illustrating the growing cost burden for renters.
Meanwhile, the new Renters’ Rights Act provides new tenant protections, including the abolition of section 21 ‘no-fault’ evictions and ending the practice of landlords demanding large amounts of rent in advance from tenants.
However, critics would like it to go further, and advocate for government measures such as rent caps linked to inflation or wage growth, and a national rental affordability commission.
And while tenants wrestle with rising rents, landlords face their own uncertainties.
The supply of new rental properties remains almost static, with fresh listings only 1% higher than last year, the lowest growth in 2025 so far. This constrained supply further fuels rent inflation.
An annual survey by property technology firm Goodlord found that roughly one-third of landlords are considering exiting the buy-to-let market due to regulatory and financial pressures.
Daniel Fisher, head of lettings at John D Wood & Co, said: ‘Many landlords are hesitant to invest amid limited capital growth, shifting tax rules, and ongoing uncertainty around the Renters’ Rights Bill and the Budget.
‘The result is a slower, more cautious market that’s likely to remain uneven over the next year or so — though this also presents opportunities for well-capitalised landlords to expand as others exit, and for tenants to benefit from a wider choice of homes.’
The outcomes of these intersecting factors will likely have widespread ramifications for communities and local economies across the UK.
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