Quick Summary
UK rents have reached new record highs as rental supply falls for the first time since 2022, creating a tighter market while tenant competition remains below post-pandemic peak levels.
• Average rents have hit record levels: Advertised rents outside London rose to £1,397 per month, while London rents reached £2,791 per month after the capital’s sharpest quarterly rise since 2023
• Rental supply is starting to contract: Available rental properties are now 1% lower year-on-year, marking the first annual decline in supply since 2022
• London is seeing the steepest supply pressure: The capital recorded the sharpest drop in available rental stock, contributing directly to stronger quarterly rent growth
• Tenant competition remains more balanced than 2022: The average rental property now receives 10 enquiries, below last year’s level and well under the 22 enquiries seen at the post-pandemic peak
• Regional markets continue to show growth: The North East and North West recorded the strongest annual rent increases at 4.1%, while elevated buy-to-let mortgage rates continue to shape landlord decisions
Average advertised rents across Britain have reached new record highs as the supply of available rental homes has declined for the first time in two years, according to the latest data from Rightmove.
Outside London, the average advertised rent rose 1.9% during the second quarter to reach a record £1,397 per calendar month, 2.3% higher than the same period last year. In the capital, rents increased 2% over the quarter to a record £2,791 per month, marking London's largest quarterly rise since 2023.
The number of rental properties available nationally is now 1% lower than a year ago, representing the first annual decline in supply since 2022. Rightmove attributes this contraction primarily to fewer newly listed rental homes entering the market, rather than properties being let more quickly.
London experienced the steepest supply drop, which has directly contributed to the capital's sharp quarterly rent increase. This tightening of available stock comes as landlords continue to adjust to regulatory changes, including the pending Renters' Rights Act, which has prompted some to exit the market entirely.
Despite the supply constraints, competition between tenants has remained well below the intense levels seen during the post-pandemic rental surge. The average rental property now receives 10 enquiries, down from 11 a year ago and significantly below the 22 enquiries recorded at the 2022 peak.
However, demand still exceeds pre-COVID norms, when properties typically received around five enquiries. This suggests the market has stabilised at a new equilibrium tighter than historical standards but more balanced than the extreme conditions of recent years.
Rental market conditions continue to vary significantly across Britain. The North East and North West recorded the strongest annual rent growth at 4.1%, reflecting sustained demand in more affordable regional markets where yield premiums remain attractive.
On the financing side, buy-to-let mortgage rates have softened modestly, with the average two-year fixed rate declining to 5.55% from 5.67% last month. However, rates remain elevated compared to the 5.20% recorded a year ago, continuing to impact landlord economics and investment decisions.
Rightmove's Colleen Babcock commented: "We're seeing new record average rents advertised in both London and Great Britain outside of the capital; however, overall, we're seeing rents return to more familiar seasonal patterns and stable growth. Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022."