Average rents hit new highs as fewer properties are being listed in the UK rental market, creating greater demand.
Average rents across Britain have reached new record highs, according to the latest figures from Rightmove, with a shortage of available rental properties continuing to put upward pressure on prices.
Latest data from the property website suggests that a limited supply of rental properties is driving rental costs upwards in many parts of the country.
Rents reach record levels
Outside London, the average advertised rent rose by 1.9% in the second quarter of 2026 to a record £1397 per month. That’s 2.3% higher than the same period last year.
In London, average rents also reached a new high, rising by 2% over the quarter to £2791 per month, an annual increase of 2.9%.
Annual figures from the Office for National Statistics show that average rental costs increased by 3.5% in the 12 months to April 2026.
Why are rental costs going up?
One of the main reasons behind the continued rise in rents is a reduction in the number of homes available in the UK rental market.
Rightmove says the supply of rental properties is now 1% lower than a year ago, marking the first annual fall in available rental homes since 2022.
Although fewer properties are coming to market, competition among tenants has eased considerably compared with the peak seen in 2022. The average rental property now receives around 10 enquiries, compared with 22 during the height of the post-pandemic rental market.
Northern England leads rental growth
Rental growth continues to vary across the country. The strongest annual increases were recorded in the North East and North West, where average rents have risen by 4.1% over the past year.
By comparison, rents increased by 1.5% in both the East Midlands and the East of England.
What do these figures mean for landlords?
The figures suggest that demand for rental homes remains resilient, while the supply of available properties has reduced.
For landlords, this may help support rental income. That said, higher borrowing costs and ongoing legislative changes mean it’s increasingly important to review mortgage arrangements to ensure rental properties remain financially viable.
If fewer landlords bring properties to market, rental supply could tighten further. This could place additional upward pressure on rents over the coming months.
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Thinking about buying instead of renting?
Approximately 8.79 million households rent their homes in the UK, which accounts for about 35% of all UK households. If you are renting while trying to save up for a house deposit, it's often recommended to keep your rental costs at or below 30% of your gross income. However, this can be challenging, especially in more expensive locations. Around 40% of your gross income is common for rental costs and sometimes unavoidable.
If you’ve been renting or you’re struggling to find the right rental property, you might want to consider what it would cost to apply for a mortgage. You may be surprised to discover that monthly mortgage payments can sometimes be comparable to your current rent. An experienced mortgage broker can help you explore your options. If you'd like to find out more about what's involved in buying your first property, you can read our free guide for first-time buyers.
