In a significant shift for the UK housing sector, average asking rents for properties outside London have reached a standstill in the early months of 2026. According to the latest index from Rightmove, this marks the first instance since 2017 where rents have not increased between the fourth quarter of one year and the first quarter of the next.
Market Stagnation and Shifting Dynamics
Across Britain, excluding the capital, the average advertised rent for homes newly listed on the market showed no change, remaining at £1,370 per month between the final quarter of 2025 and the opening quarter of 2026. This stagnation contrasts sharply with London, where asking rents experienced a modest quarterly rise of 0.7%, pushing the average to £2,736 per month.
Rightmove attributes this broader slowdown to a more balanced supply and demand landscape. The property portal noted that the average rental home now attracts eight inquiries, a notable decline from 11 a year ago and a peak of 29 in 2022. However, this figure still surpasses the pre-pandemic average of five inquiries per property.
Increased Price Sensitivity and Tenant Affordability
The market has become increasingly price-sensitive, with a record 26% of rental listings seeing price reductions—the highest proportion at this time of year since records began in 2012. Rightmove emphasised that affordability pressures persist for tenants, with many likely reaching the upper limits of what they can pay.
Colleen Babcock, a property expert at Rightmove, commented: “Rents holding steady this quarter reflects how affordability remains stretched, but also how supply and demand is more balanced. With more homes available to rent and less competition between tenants, landlords are needing to position rents correctly for the current market to secure a tenant.”
She added: “As market conditions rebalance, homes are taking longer to let. The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods.”
Rental Hotspots Defy the Trend
Despite the overall slowdown, Rightmove has identified several rental price hotspots across the UK that have witnessed substantial annual increases in asking rents. These areas have defied the broader trend, with some seeing surges of over 20%.
The top hotspots, along with their average asking rent in March 2026 and annual percentage increase, are as follows:
- Iver, Buckinghamshire, South East: £2,893, 21.8%
- Godalming, Surrey, South East: £2,341, 19.8%
- Truro, Cornwall, South West: £1,494, 19.4%
- Harrogate, North Yorkshire, Yorkshire and the Humber: £1,621, 18.9%
- Urmston, Greater Manchester, North West: £1,600, 17.6%
- Runcorn, Cheshire, North West: £1,087, 15.1%
- Ascot, Berkshire, South East: £4,014, 14.9%
- Warrington, Cheshire, North West: £1,321, 14.9%
- Batley, West Yorkshire, Yorkshire and the Humber: £972, 14.6%
- Paisley, Renfrewshire, Scotland: £931, 14.5%
Expert Insights and Future Outlook
Adam Jennings, head of residential at Chestertons, observed: “Across the first quarter of 2026, we’ve seen a clear pick-up in lettings activity, particularly towards the end of March, with a noticeable increase in viewings and agreed lets compared to earlier in the quarter. Well-presented, correctly priced properties are continuing to let quickly, especially in areas where supply remains constrained.”
This analysis underscores a dual narrative in the UK rental market: while broader trends indicate a pause in rent growth due to increased supply and tenant affordability limits, specific localities continue to experience robust demand and significant price hikes. The data suggests landlords must adopt a more strategic approach to pricing in this evolving landscape.
