Average private rents across Great Britain have climbed to new highs, with some local markets posting increases of more than a quarter in a year. Rightmove’s latest figures show the typical advertised rent for properties outside London reached £1,385 per calendar month in the third quarter, a fresh record and the third consecutive quarterly peak. The average asking rent in the capital rose to £2,736 per month.
Affordability under pressure despite pay growth
Affordability remains tight. Although average earnings are up around 5% yearly, rent now absorbs 44% of the typical salary, compared with 40% five years ago. That squeeze is felt most keenly by households already under pressure from wider living costs. Citizens Advice reports that private renters, alongside single parents, struggle most, and it is not unusual for rent to consume more than half of take-home pay.
Landlords face their own headwinds. Last autumn’s stamp duty changes, speculation about further tax measures in the forthcoming Budget and uncertainty surrounding the Government’s Renters’ Rights Bill, which has cleared Parliament and awaits royal assent, are cited as factors pushing some investors to exit and deterring others from entering the sector. Higher interest rates have also raised borrowing costs, prompting some landlords to sell or to pass on part of the increase through higher rents.
Supply is improving, but from a low base. According to Rightmove, the number of homes available to rent is 9% higher than last year. Even so, available stock remains 23% below 2019 levels, and new listings have slowed in recent months, now only 1% higher than a year ago. In short, demand continues to outstrip supply, the fundamental driver of upward pressure on rents.
Regional hotspots show sharp annual rises
National averages mask stark regional differences. Several hotspots have seen striking jumps in advertised rents over the past 12 months. Fulwood, a suburb of Preston in Lancashire, tops Rightmove’s table with a 32% rise, from £970 to £1,284 monthly. Keighley in West Yorkshire and Frome in Somerset posted 27% annual increases. Newquay in Cornwall recorded a 23% uplift, while Gainsborough in Lincolnshire rose 22%. Other areas with at least 17% growth include Burgess Hill in West Sussex, Billericay in Essex and Paisley in Renfrewshire, recently named Scotland’s town of the year. Such variation reflects local dynamics, including proximity to employment hubs, changing space and transport links preferences, and investor activity ebb and flow.
Lettings agents describe a market still competitive for good-quality homes but less frenetic than a year ago. Tenant demand has eased slightly as economic and political uncertainty has encouraged people to delay moves, while many landlords remain hesitant about fresh investment. The result, they say, is a slower, more cautious market that could remain uneven over the next year.
Several themes will shape the outlook. First, the balance between tenant demand and available stock remains the key determinant of pricing. Any sustained increase in rental supply, whether through new build-to-rent schemes, improved landlord confidence or owners returning properties to the market, would help temper growth. Second, policy signals matter: clarity on taxation and the detail of the renters’ legislation could stabilise investment decisions. Third, the path of interest rates will influence landlords’ costs and tenants’ budgets.
For now, the headline picture is clear: advertised rents have set new records across Great Britain, affordability is stretched for many households, and supply, while improving, remains well below pre-pandemic levels. In this environment, renters may need to act quickly on suitable properties, and landlords should keep a close eye on local trends, regulatory developments and financing costs as they plan for the year ahead.
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