Newly agreed rents rise at fastest pace in nearly two years, index shows

Newly agreed rental prices on fresh tenancies have risen at their fastest pace in nearly two years, according to a property firm.

Hamptons said the annual pace of rental price growth on new lets accelerated for the 10th month in a row in September.

It said average newly agreed rents across Britain increased by 2.7% annually, taking the average to £1,433 per month, up from £1,396 in September last year.

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.

“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.”

The Hamptons lettings index uses data from the Connells Group to track changes to the cost of renting. It is based on achieved rather than advertised rents.

Here are average monthly rents for new lets in August, according to Hamptons, and the annual percentage increase:

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%