Rents across the UK have reached record-breaking levels once again, according to new figures released by Rightmove. The latest data reveals that tenants are now spending nearly half of their income just to keep a roof over their heads, highlighting how stretched affordability has become for millions of renters.
In London, the average advertised rent for a property has climbed to £2,736 per month — up 1.6% compared to this time last year. Meanwhile, rents outside the capital now average £1,385 per month, marking a 3.1% annual rise. Though this is the smallest yearly increase since late 2020, it still reflects the ongoing financial strain facing tenants.
Despite the slower pace of annual growth, renters outside of London are still paying over £20 more each month than they were in the previous quarter. This continued rise means that rent now consumes around 44% of the average wage across Britain, up from 40% just five years ago.
Rightmove noted that affordability remains “very stretched” for both tenants and landlords, even as rent growth begins to cool slightly. The pressure on renters has been further amplified by stagnant wage growth and the high cost of living, leaving many struggling to balance essentials with housing expenses.
Tom Darling, director at the Renters’ Reform Coalition, described the situation as “out of control,” pointing to survey data showing that almost one in three tenants are finding it difficult to afford basic necessities like food and household goods because of rising rents. He warned that unaffordable housing is forcing families out of their communities and pushing key workers into shared homes or out of cities altogether.
Darling added that while the Renters’ Rights Bill promises to strengthen protections for England’s 12 million private tenants — including the long-awaited end of Section 21 evictions — it will not, on its own, solve the affordability crisis. He called on the government to introduce a cap on rent increases so they cannot rise faster than inflation or wages, alongside the creation of a national rental affordability commission.
For tenants dealing with rising rent demands, legal experts are urging them to first review their tenancy agreements carefully. Mike Hayne of HCB Solicitors explained that for those in fixed-term tenancies, rent cannot usually increase until the contract ends unless both parties agree. In rolling or periodic tenancies, landlords must also provide written notice — typically at least a month in advance — before increasing rent.
Hayne advised tenants who feel a rent hike is excessive to open a conversation with their landlord or letting agent. “A bit of honest communication can go a long way,” he said, suggesting that many disputes can be resolved amicably. However, he also noted that if a rent rise feels unreasonable or out of line with local market trends, tenants should seek legal advice to ensure the increase is fair and justified.
Rightmove’s research offers further insight into regional rent trends. In the North West of England, average advertised rents have risen by 5.1% over the past year, reaching £1,241 per month. In Yorkshire and the Humber, rents have climbed by 4.1% to an average of £1,093 per month. Interestingly, this region also boasts the highest average rental yields in Britain at 7.2%, up 0.3% year-on-year.
Fulwood in Lancashire emerged as Rightmove’s top rental hotspot, with average advertised rents surging from £970 to £1,284 over the past year — an extraordinary 32% increase. Keighley in West Yorkshire followed closely, where average rents jumped by 27% year-on-year, from £815 to £1,038. Other notable areas seeing sharp increases include Frome in Somerset, Newquay in Cornwall, and Gainsborough in Lincolnshire.
However, while rents continue to rise, the supply of new rental listings entering the market has barely moved. Rightmove’s data shows that new rental properties coming onto the market are up by just 1% compared to the same period last year — the lowest growth seen in 2025 so far.
Landlords are also facing a climate of uncertainty as they await the government’s Autumn Budget, expected from Chancellor Rachel Reeves. Speculation around potential tax changes, stamp duty reforms, and the impact of the Renters’ Rights Bill has left many unsure about their next steps. Some fear that landlords could soon be required to pay National Insurance contributions on rental income, adding further pressure to an already complex market.
Although the average interest rate on new buy-to-let mortgages has dropped slightly to 4.87%, it remains significantly higher than the 2.93% rate seen before the 2022 mini-budget. These elevated borrowing costs are squeezing profit margins and making it harder for landlords to expand or even maintain their portfolios.
A recent Goodlord survey found that one in three landlords are considering exiting the rental market altogether. Two-thirds said they feel unsupported by the government, and fewer than half said they fully understand the details of the Renters’ Rights Bill. This uncertainty, combined with high mortgage costs, has created a cautious environment for property investors.
Rightmove’s property expert, Colleen Babcock, acknowledged that while most landlords intend to remain in the market, many are facing significant challenges. She explained that those looking to expand must now carefully assess the viability of their investments amid fluctuating mortgage rates and unclear legislation. Babcock noted that “sustained high costs and ongoing uncertainty are making landlords more cautious than ever.”
Daniel Fisher, head of lettings at John D Wood & Co., added that tenant demand has slightly eased as broader economic and political uncertainty makes people more hesitant to move. Some businesses are reducing relocation budgets, and certain renters are leaving London altogether, leading to more re-let properties becoming available.
Fisher described the current rental market as “slower and more cautious,” predicting that conditions will remain uneven for at least another year. However, he also suggested that this could create opportunities for well-capitalised landlords to expand as others sell up — and for tenants to benefit from a wider selection of homes as supply gradually improves.
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