Newly agreed rents in London have reached an average of £2,357 a month, as rental price growth across Britain accelerates at its fastest pace in nearly two years.
The figures, from estate agency Hamptons, show the annual growth rate of rental prices on new tenancies has now sped up for the 10th consecutive month, with average newly agreed rents rising 2.7% year-on-year.
London remains by far Britain’s most expensive region for renters. The capital’s average of £2,357 a month dwarfs the national average of £1,433 — itself up from £1,396 in September last year.
Growth spreading across the country
The South East and South West both recorded annual rental growth above 4% for the first time since September 2024, with average rents now at £1,544 and £1,353 respectively.
Other regions have also seen significant increases. The West Midlands recorded a 3.5% rise to £1,136, while the North West saw a 3.6% increase to £1,090. Yorkshire and the Humber experienced a 3.8% rise to £985, and the North East saw a 3.1% increase to £948.
The East of England and Scotland saw more modest increases of 1.6% and 1.9%, with average rents now at £1,294 and £1,099 respectively.
Pressure on movers first
Aneisha Beveridge, head of research at Hamptons, said: “So far this year, higher rents have mainly been felt by tenants moving home. 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.”
For existing tenants, the average rent increase remained steady at 5.6%, unchanged from August.
The figures come from Hamptons’ lettings index, which uses data from the Connells Group to track achieved rents — based on what tenants actually pay rather than advertised asking prices.
London’s rental market has long been the country’s most pressurised, with demand consistently outstripping supply. The latest figures underline how the affordability gap between the capital and the rest of the country continues to widen.
What it means for renters
For Londoners searching for a new home, the £2,357 average represents a significant monthly outlay — equivalent to more than £28,000 a year before bills. The 10-month streak of accelerating growth suggests little relief is on the horizon for those looking to move.
The widening gap between rents on new tenancies and what existing tenants pay could also create pressure in the coming months. As Beveridge noted, if growth continues at this pace, landlords may seek to close that gap when existing tenancies come up for renewal.
For more on the capital’s housing market, see our coverage of Wandsworth Council’s housing failings and Bromley’s political turmoil.
