Rents across Britain have reached new record highs, new data shows.
The average advertised rent for a home in London is £2,736, which is 1.6 per cent higher than a year ago.
Average advertised rents outside of London stand at £1,385, up 3.1 per cent compared to the same point last year, Rightmove’s Rental Trends Tracker said.
At 3.1 per cent, the annual rise in rents outside of London is the lowest it has been since the third quarter of 2020.
However, tenants will be feeling the pinch, as rents outside of London have risen by more than £20 just on a quarter-on-quarter basis.
The cost of renting takes up 44 per cent of the average wage, up from 40 per cent five years ago.
Paying the price: Rents inside and outside of London have reached new record highs, Rightmove said
Affordability remains ‘very stretched’ for tenants and landlords, Rightmove said.
Tom Darling, director at the Renters’ Reform Coalition, told the Daily Mail: ‘The cost of rent is out of control – our polling suggests nearly a third of tenants are struggling just to afford basic necessities like groceries due to high rents.
‘Unaffordable rents are pushing families out of their homes and communities, and forcing workers in our cities to live in house shares or leave altogether.’
He added: ‘The Renters’ Rights Bill will finally end section 21 and deliver vital new protections for England’s 12 million private renters, but it won’t put a lid on this affordability crisis.
‘The Government should introduce a cap on rent increases to stop them from rising faster than inflation or wages, and set up a national rental affordability commission to explore ways to make renting genuinely affordable.’
What can tenants do?
Tenants facing rising rents should check the landlord has done everything correctly.
Mike Hayne, business development manager at HCB Solicitors, said: ‘The first step is to check your tenancy agreement, if you are in a fixed-term contract, rent usually can’t go up unless you agree to it or the fixed term comes to an end.
Rising: Average rental costs in the north west of England have risen over 5% in the past year
‘Landlords also have to give proper written notice before increasing the rent, usually at least a month’s notice for rolling or periodic tenancies.
‘If the new amount feels too steep, it’s worth having a conversation with your landlord or estate agent.
‘A bit of open, honest communication can often lead to a compromise.
‘But if you’re still worried, especially if the increase doesn’t seem to reflect what’s happening in the local market, don’t be afraid to seek legal advice. Ultimately, any rent increase should be fair and justifiable. Clear communication and transparency from both sides are key to keeping things on good terms.’
Where are rents rising?
Delving into the detail of Rightmove’s findings reveals the extent of what many tenants are facing.
Across the north west of England, average advertised rents are, at £1,241, 5.1 per cent higher than a year ago.
In Yorkshire and the Humber, average rents are 4.1 per cent higher than last year, seeing tenants fork out around £1,093 per month. Yields for landlords in Yorkshire and the Humber are the highest in Britain, at 7.2 per cent, and up 0.3 per cent year-on-year.
Fulwood, Lancashire, came in first place in Rightmove’s rental price hotspot rankings. Average advertised rents in Fulwood have risen from £970 to £1,284 in the last year, representing a hefty 32 per cent annual increase.
In Keighley, West Yorkshire, average rents have increased by 27 per cent year-on-year, from £815 in the third quarter of 2024 to £1,038 in the third quarter of this year.
Other locations where rental costs for tenants have risen sharply in the past year include Frome in Somerset, Newquay in Cornwall and Gainsborough in Lincolnshire.
How are landlords faring?
While rental costs for tenants are rising, the pace of new rental properties coming to the market has slowed.
The number of new rental listings coming onto the market is only 1 per cent higher than at this time last year, marking the lowest this figure has been in 2025 so far.
Landlords face a quagmire of uncertainty as the wait for Rachel Reeves’ dreaded Autumn Budget rolls on.
Stamp duty increases, potential tax changes in the Autumn Budget, and the Renters’ Rights Bill are all having to be considered carefully by landlords, Rightmove said.
Rumours are swirling that Reeves could force landlords to start paying national insurance contributions on their rental income.
The average interest rate on new buy-to-let mortgages is 4.87 per cent, according to UK Finance. While down from last year, this is nearly double the 2.93 per cent seen before the mini-Budget in 2022.
In a recent survey by Goodlord, one in three landlords said they were considering exiting the market in the future.
Two-thirds of landlords surveyed said they felt unsupported by the government, while only 43 per cent said they were fully aware of the Renters’ Rights Bill and ready for the changes.
Colleen Babcock, Rightmove’s property expert, said: ‘The majority of landlords are looking to stay in market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property.
‘Sustained high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty around legislation like the Renters’ Rights Bill and what may or may not be in the upcoming Autumn Budget isn’t helpful when looking to make financial investments.
‘Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration.’
Daniel Fisher, head of lettings at John D Wood & Co, said: ‘Tenant demand has eased as wider economic and political uncertainty makes people more cautious about moving, with many businesses scaling back relocations and some renters leaving London altogether.
‘This has led to more re-let properties coming to market, even as the overall number of landlords declines.
‘At the same time, many landlords are hesitant to invest amid limited capital growth, shifting tax rules, and ongoing uncertainty around the Renters’ Rights Bill and the Budget.’
He added: ‘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.’
