Rental growth across Great Britain accelerated for the tenth consecutive month in September, with newly agreed rents increasing at their fastest annual rate since November 2024. The latest figures from lettings agency Hamptons show that rents for new tenancies rose by 2.7% over the year, highlighting continued pressure on the private rental market.
The average monthly rent for a newly agreed tenancy reached £1,433 in September, compared with £1,396 during the same month last year. The increase reflects a strengthening trend in rental growth, which is now being seen across a wider range of regions rather than being concentrated in particular parts of the country.
Rental Growth Spreads Across Great Britain
The latest rise differs from the rental market’s recovery following the Covid pandemic, when stronger growth was largely driven by the Midlands and northern England. This time, rental increases are becoming more widespread, with several southern regions recording particularly strong annual growth.
Both the South East and South West saw rents for new tenancies increase by more than 4% year-on-year for the first time since September 2024. The South East recorded annual growth of 4.6%, taking average monthly rents for new lets to £1,544. In the South West, rents rose by 4.1% to £1,353 per month.
The North also experienced notable growth, with rents for newly agreed tenancies increasing by 3.6% over the year to September. Yorkshire and the Humber recorded a slightly stronger rise of 3.8%, while the North West saw an increase of 3.6%.
In the West Midlands, new-let rents climbed by 3.5%, although growth in the East Midlands was considerably slower at just 0.3%.
Wales recorded annual rental growth of 2.5%, bringing the average monthly rent for a new tenancy to £888. Scotland saw a more modest increase of 1.9%, with average rents reaching £1,099 per month.
London Rental Growth Remains More Modest
Despite continued pressure on rents across much of the country, London recorded slower growth than several other regions.
Hamptons reported that average rents for newly agreed tenancies in Greater London rose by 1.5% year-on-year to £2,357 per month. This was below the 2.7% increase recorded across Great Britain as a whole.
However, the picture varied between inner and outer London. Inner London rents increased by 2.5% over the year, reaching an average of £2,812 per month. In outer London, annual growth was much weaker at 0.4%, with rents averaging £2,023.
The figures suggest that rental trends continue to differ considerably depending on location, with some areas experiencing stronger demand or tighter availability than others.
Existing Tenants Also Face Rent Increases
Although rental growth for newly agreed tenancies is accelerating, tenants who remain in their current homes are experiencing a different pattern of increases.
For existing tenants whose rents went up, the average increase reached 5.6%. This was unchanged from August but higher than the 5.3% recorded in September last year.
Scotland continued to record the largest average rent increase for existing tenants, at 6.9%, highlighting the pressure some renters face when their tenancy costs are reviewed.
Across Great Britain, the average monthly rent paid by all tenants, including those who have not moved home, reached £1,261. This represents annual growth of 1.9%.
The rate of rental growth across the wider housing stock has slowed considerably over the past year. In September 2025, rents across all tenancies were increasing at an annual rate of 3.9%. By September 2026, that figure had fallen to 1.9%.
This contrasts with the acceleration seen in newly agreed rents, suggesting that tenants moving into a new property are currently experiencing a different level of rental inflation from those remaining in their existing homes.
Gap Between New and Existing Rents Could Narrow
Aneisha Beveridge, head of research at Hamptons, said rental growth for newly let properties was continuing to strengthen, with the trend now spread relatively evenly across markets outside London.
She explained that the impact of rising rents has so far been felt most strongly by tenants moving home. However, if the current pace of growth continues, existing tenants could face greater pressure in the months ahead.
The difference between rents agreed for new tenancies and those paid by existing renters may become increasingly significant. As newly agreed rents rise more quickly, landlords may look to adjust rents for existing tenants, potentially bringing the two rates of growth closer together over time.
For tenants, this could mean that rental increases become more noticeable even without moving to a different property. For landlords, the figures provide an indication of how rents are changing across the market, although individual increases will depend on factors such as location, property type and existing rental agreements.
What the Latest Figures Mean for Landlords
The latest Hamptons data points to a rental market where growth is gathering pace for new tenancies, despite a slower increase across the wider housing stock.
With average rents for new lets rising by 2.7% annually, landlords may find that current market conditions offer opportunities to review their pricing when properties become vacant. However, the differences between regions show why local market conditions remain important when setting an asking rent.
The figures also suggest that rental growth is no longer being driven primarily by the Midlands and northern England. Stronger increases in the South East and South West indicate that pressure is becoming more widespread across Great Britain.
At the same time, the slower rate of growth across all tenancies highlights the distinction between rents paid by new tenants and those already living in a property.
If rental growth for new lets continues to accelerate, the gap between these groups could narrow in the coming months. This may have implications for tenants facing renewal discussions and landlords assessing the potential rental value of their properties.
Overall, Hamptons’ latest figures show that rental growth has continued to strengthen for ten consecutive months, with the trend extending across much of the country. While existing tenants have so far experienced slower annual growth overall, further increases in newly agreed rents could place additional pressure on household budgets if the trend persists.
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