Newly agreed rental prices on fresh tenancies across Britain rose at their fastest annual pace in nearly two years in September, according to property firm Hamptons. The company reported that the annual rate of rental price growth on new lets accelerated for the 10th consecutive month.
Average new rents reach £1,433 per month
Hamptons said average newly agreed rents across Britain increased by 2.7% annually, taking the average to £1,433 per month, up from £1,396 in September last year. This marks the strongest growth since late 2024, reflecting continued pressure in the lettings market.
The South East and South West of England recorded annual growth above 4.0% for the first time since September 2024. In the South East, average new rents rose 4.6% to £1,544 per month, while the South West saw a 4.1% increase to £1,353 per month.
Existing tenants see slower rent increases
Where an existing tenant’s rent increased, the average rise remained at 5.6%, unchanged from August. This suggests that while new tenancies are facing sharper increases, sitting tenants are still experiencing significant but stable rises.
Aneisha Beveridge, head of research at Hamptons, said: “So far this year, higher rents have mainly been felt by tenants moving home. But if growth continues to pick up, it is likely to feed through to more existing tenants in the coming months as the gap between new and existing rents widens.”
Regional breakdown of average new rents
The Hamptons lettings index uses data from the Connells Group to track changes to the cost of renting. It is based on achieved rather than advertised rents, providing a clearer picture of actual market conditions.
Here are average monthly rents for new lets in September, according to Hamptons, and the annual percentage increase:
- London: £2,357, 1.5%
- East of England: £1,294, 1.6%
- South East: £1,544, 4.6%
- South West: £1,353, 4.1%
- East Midlands: £1,017, 0.3%
- West Midlands: £1,136, 3.5%
- North East: £948, 3.1%
- North West: £1,090, 3.6%
- Yorkshire and the Humber: £985, 3.8%
- Wales: £888, 2.5%
- Scotland: £1,099, 1.9%
The data shows significant regional variation, with the South East and South West leading growth, while the East Midlands saw the smallest increase at just 0.3%. London remains the most expensive area to rent, with average new lets at £2,357 per month, though its annual growth was relatively modest at 1.5%. Wales had the lowest average rent at £888 per month, with a 2.5% annual rise.
Hamptons noted that if current trends continue, the widening gap between new and existing rents could lead to more existing tenants facing increases in the coming months, as landlords adjust to market conditions.
