UK Rental Rates Hit New Record High

The average advertised rent across Great Britain has risen to a new record high, hitting £1,577 per month in August, which is +3% higher than at this time last year.

Rightmove says constrained supply continues to push rental prices upwards despite a cooling of tenant demand.

The property portal had +8% more rental listings in August this year compared to 2024, but current stock levels are the lowest since January – and remain some -27% below pre-pandemic August 2019.

Asking rents are rising quickest in the North West, with average rents +10% higher than a year ago, and slowest in London, where average rents are now +2% higher than this time last year.

“The rest of the year is set to be busy for the rental market,” understates the Rightmove team, as potentially seismic changes loom for the sector: The Renters’ Rights Bill is on the way to becoming law this Autumn, and the Chancellor has confirmed the Autumn Budget will take place on at the end of November – with much chatter of possible property tax hikes.

A third (33%) of landlords surveyed by Rightmove over the summer said they are “considering” exiting the market “at some point in the future”, with two-thirds (66%) “feeling unsupported by the government”.

Legislative changes such as new taxation and regulation (68%) topped the list of landlord frustrations.

Despite this, half (51%) of the landlords plan to maintain the size of their portfolio over the next 12 months, and a fifth (20%) expect to increase it.