Newly agreed rental prices for fresh tenancies have risen at the fastest pace in almost two years, new research has found.
According to estate agent Hamptons, the annual pace of rental price growth on newly let properties climbed for the 10th month in a row in September, while average rent for properties across Britain increased by 2.7 per cent annually, hiking the average to £1,433 per month, up from £1,396 in September last year.
Where an existing tenant’s rent increased, the average rise remained at 5.6 per cent, which Hamptons said was unchanged from August.
According to the property firms’ data, London was recorded as having the highest average monthly rent of all areas in Britain, with renters spending an average £2,357 per month, which rose by 1.5 per cent compared to last year.
The South East and South West of England both recorded annual growth above 4.0 per cent for the first time since September 2024, compared to a minimal 0.3 per cent rise for properties in the East Midlands.
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SUBSCRIBE HERE“So far this year, higher rents have mainly been felt by tenants moving home,” Aneisha Beveridge, head of research at Hamptons, said.
“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,” Beveridge added.
The Hamptons lettings index uses data from the Connells Group to track changes to the cost of renting and is based on achieved rental prices rather than advertised rents.
London’s luxury rental market hard-pressed
The average cost of renting a prime home in London shot up by 67 per cent just this year to £4,177 per week and £217,204 per year, luxury estate agent Beauchamp Estates revealed in September.
The letting value of a luxury flat or penthouse in the capital soared by 15 per cent this year to £101,764 per year, as the average size of these properties fell to a three-year low of 1,255 sq ft.