Newly agreed rents across Britain hit two-year high

Research reveals that rental prices for new tenancies in Britain have surged to a two-year peak. Estate agent Hamptons discovered that rental price growth on freshly let properties accelerated to the fastest rate in nearly two years, with September marking the 10th consecutive monthly increase. The average rent across the UK rose by 2.7 percent annually, reaching £1,433 per month, up from £1,396 in September 2023.

Existing tenants experienced an average rent increase of 5.6 percent, while new tenants faced a more substantial rise. London emerged as the region with the highest average monthly rent, at £2,357, a 1.5 percent increase from last year. The South East and South West of England saw annual growth exceeding 4.0 percent for the first time since September 2024, in contrast to a mere 0.3 percent rise in the East Midlands.

According to Aneisha Beveridge, Hamptons' head of research, the recent rent hikes have primarily impacted tenants moving homes. However, if the upward trend persists, it could eventually affect existing tenants as the disparity between new and existing rents widens. The Hamptons lettings index, which tracks rent cost changes using Connells Group data, focuses on actual rental prices rather than advertised ones.

In London, where the luxury rental market is under pressure, the average cost of renting a prime property jumped by 67 percent this year, reaching £4,177 per week or £217,204 per year. Luxury estate agent Beauchamp Estates noted that this year, the value of a luxury flat or penthouse in the capital surged by 15 percent to £101,764 per year, while the average size of these properties declined to a three-year low of 1,255 square feet.