Tenants in Brighton have experienced the steepest rise in rental prices in Britain over the past year, as strong demand continues to collide with a shortage of available homes.
New figures show that average monthly rents in the seaside city climbed by 15 per cent over the course of the year, rising from around £2,255 at the beginning of the period to approximately £2,602 by the end. This makes Brighton the fastest-growing rental market in the country in terms of annual price increases.
Across Britain more broadly, towns and cities along the south coast recorded some of the largest jumps in rent. Research carried out by Lomond, which operates a national network of sales and lettings agents, found that average rents in the South East increased by 10.5 per cent, reaching £1,774 per month in 2025.
While Brighton led the way in terms of price growth, other coastal locations also remained highly sought after. Lomond reported that tenant demand in cities such as Southampton, Portsmouth and Worthing continued to exceed the number of available rental properties, keeping pressure on prices throughout the year.
The firm suggested that Brighton’s appeal lies in its lively atmosphere and its reputation as a commuter hub by the sea. Often dubbed “London-by-the-Sea”, the city continues to attract workers who benefit from hybrid and flexible working arrangements, allowing them to live outside the capital while remaining connected to it.
Elsewhere, the rental market showed more modest movement. In London, average rents rose by just 1.5 per cent to £2,395 per month. Despite the slower pace of growth, rental costs in the capital remain around 49 per cent higher than the national average. Both inner-city and suburban markets were described as relatively stable over the year.
Across Britain as a whole, rents increased by an average of 4.9 per cent, bringing the typical monthly cost to £1,602. In the Midlands, prices climbed by roughly 5 per cent to £1,168 per month, while the North West recorded a 4 per cent rise to £1,243. Lomond noted that furnished city-centre properties were particularly popular with tenants in that region.
Scotland was the only part of the UK to see a small annual decline in average rents, with prices falling by around 1 per cent. However, this was accompanied by a significant rise in landlord activity, with new landlord instructions increasing by 38 per cent. Many renters there were drawn to homes that were ready to move into immediately.
Buy-to-let mortgage activity, which dropped sharply between 2023 and 2024, showed signs of stabilising during 2025. Lending for buy-to-let properties accounted for roughly 8 to 9 per cent of all new mortgages, suggesting landlords remain involved in the market but are proceeding cautiously in response to economic and regulatory changes.
Industry figures have attributed Brighton’s rapid rent growth to a combination of limited supply and sustained demand. With fewer landlords reinvesting and continued inward migration, competition for good-quality rental homes has intensified. For tenants, this has meant higher monthly costs and tougher competition, while for landlords who remain active in the sector, conditions continue to offer solid yields and reliable demand.
Further data from SpareRoom indicates that tenants priced out of major city centres are increasingly turning to commuter towns. Locations such as Esher in Surrey have seen sharp rises in interest from flatshare tenants, with demand increasing by more than 30 per cent over the year. In some areas, more than 11 people are now competing for every available room.
At the same time, major legislative changes are reshaping the private rented sector. The Renters’ Rights Bill, which became law in October 2025, has removed so-called “no-fault” evictions and replaced fixed-term tenancies with rolling periodic agreements. Tenants now have greater freedom to leave with two months’ notice and stronger protections against unfair rent increases or poor housing conditions.
Taken together, the figures highlight a rental market under continued strain. Demand remains strong in popular cities and commuter locations, while supply is struggling to keep pace. With new legal frameworks now in place and lending stabilising, the focus for 2026 is likely to be on how landlords, agents and tenants adapt to a more regulated but still highly competitive market.
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