Record-Breaking Rents Squeeze British Tenants
Britain's rental market has reached a critical juncture as new data reveals record-high costs are placing unprecedented pressure on tenants nationwide. According to the latest figures from Rightmove's Rental Trends Tracker, the landscape is characterised by rising prices, cautious landlord activity, and increasing affordability challenges for renters across the country.
Regional Variations in Rental Inflation
In the capital, the average advertised rent now stands at £2,736 per month, marking a 1.6% increase from the previous year. While this growth rate appears modest by historical standards, it underscores the persistent upward pressure on housing costs in London.
Outside London, the situation shows even stronger growth with rents rising by 3.1% over the past year to reach a new record of £1,385 per month. Notably, this represents the smallest annual jump in rental prices since 2020, indicating a potential deceleration in the market's rapid inflation - though certainly not a reversal of the trend.
The regional breakdown reveals significant disparities across Britain. Northwest England has experienced the sharpest increase with rental prices climbing 5.1% year-on-year to average £1,241. Yorkshire and the Humber followed with a 4.1% rise to approximately £1,093. London and Scotland recorded the most moderate increases, both standing at 1.6%.
Growing Affordability Crisis and Market Pressures
The relentless rise in rental costs is creating a severe squeeze on household finances. Rightmove's analysis shows that the proportion of the average wage dedicated to rent has climbed to 44%, up from 40% just five years ago. This significant increase highlights the growing financial burden facing renters across the nation.
While the new Renters' Rights Act introduces important protections for tenants - including the abolition of section 21 'no-fault' evictions and restrictions on landlords demanding large advance rent payments - critics argue these measures don't go far enough. Many are advocating for additional government interventions such as rent caps linked to inflation or wage growth, and the establishment of a national rental affordability commission.
Landlords face their own set of challenges in the current market. The supply of new rental properties remains almost static, with fresh listings only 1% higher than last year, representing the lowest growth recorded in 2025. This constrained supply continues to fuel rent inflation across the country.
An annual survey conducted by property technology firm Goodlord found that approximately one-third of landlords are considering exiting the buy-to-let market due to mounting regulatory and financial pressures.
Daniel Fisher, head of lettings at John D Wood & Co, commented: "Many landlords are hesitant to invest amid limited capital growth, shifting tax rules, and ongoing uncertainty around the Renters' Rights Bill and the Budget."
Fisher added: "The result is a slower, more cautious market that's likely to remain uneven over the next year or so - though this also presents opportunities for well-capitalised landlords to expand as others exit, and for tenants to benefit from a wider choice of homes."
The convergence of these factors - rising rents, supply constraints, and regulatory changes - is creating a complex rental environment with widespread implications for communities and local economies throughout the United Kingdom.
