Newly agreed rental prices on fresh tenancies have risen at their fastest pace in nearly two years, according to property firm Hamptons.
The annual pace of rental growth on new lets accelerated for the 10th month in a row in September, with average newly agreed rents across Britain increasing by 2.7% annually to £1,433 per month, up from £1,396 in September last year.
Regional Growth Exceeds 4%
The South East and South West of England recorded annual growth above 4.0% for the first time since September 2024. Where an existing tenant’s rent increased, the average rise remained at 5.6%, unchanged from August.
Aneisha Beveridge, head of research at Hamptons, said: “So far this year, higher rents have mainly been felt by tenants moving home.”
Potential Impact on Existing Tenants
“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, based on achieved rather than advertised rents.
Average Monthly Rents for New Lets in August
- 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%
