UK asking rents climbed to a fresh record this quarter, according to Rightmove data reported by The Negotiator. Average advertised rent for homes outside London reached £1,418 per calendar month, with quarterly growth of 1.5% and annual growth at a more sedate 2.4%. London hit its own record of £2,825 per calendar month, with annual rent growth running hotter than the rest of the country at 3.2%.
Beneath the headline figures, the market is sending mixed signals. Supply remains tight, demand has cooled from peak levels, and the pace of increase has stepped back from the acceleration seen in recent years.
The regional split: London versus the rest
The picture differs sharply by geography. Outside London, both available listings and renter demand have slipped 2% year on year—a sign of a market in equilibrium rather than overheating. London tells a different story: available listings are down 9%, newly listed homes down 7%, while demand has risen 6%. That imbalance explains why London is posting faster annual growth at 3.2%, above the national average.
The flow of stock between sectors offers another clue. The proportion of homes for sale that were previously rented sits at around 13%, roughly flat with last year. Meanwhile, the share moving from sale back to rental has fallen from 17% to 15%, suggesting some investors are choosing to sit out rather than expand. The pressure on rents persists because supply is constrained; it persists less because demand is softening.
Who should care
| Group | What the data means |
|---|---|
| London tenants | Listings are scarce and demand is rising. Expect continued upward pressure on advertised rents and stronger referencing requirements. |
| Regional tenants | Growth is slower but affordability is still stretched. Fewer homes are flipping from sale back to rent, limiting fresh supply. |
| London landlords | Your vacancy risk is lower than anywhere else in Britain. A 3.2% annual uplift is defensible, but overreaching risks voids in a market where tenants have fewer alternatives. |
| Regional landlords | Budget for low single-digit rent growth. The 2.4% annual pace roughly matches inflation, limiting real income gains without portfolio expansion. |
| Investors considering entry | The reduced flow from sale to rental signals subdued appetite for new landlord investment. Financing costs, taxation and regulation continue to weigh on decisions. |
Our analysis: What this means for the market
The headline records mask a market in transition. Annual growth of 2.4% outside London is a long way from the exceptional pace of recent years, and a closer match to wage growth. The headline figure flatters because it is measured from an already-elevated base.
The real tension is in London. A 9% drop in listings alongside 6% more demand creates the conditions for sustained inflation even as the rest of the country cools. That divergence is worth watching: if London's supply shortage deepens, expect agents and landlords to argue for larger increases at renewal, with tenants bearing the cost.
For operators and brokers, the question has shifted. Rents are still rising, but the easy gains are over. The winners are those with stock in undersupplied areas—London most of all—and those whose cost bases are stable. Losers are tenants facing compounding affordability pressure, and any landlord whose financing or regulatory costs are rising faster than 2.4% annual rent growth.
Kim Lidbury, President of ARLA Propertymark, frames it plainly: slower growth is welcome, but it will not resolve affordability challenges on its own. Supply constraints and the economics of landlord investment remain the structural drivers. Watch landlord selling data and the share of former rentals coming to market as the next indicators of direction.
Key takeaways
- Headline rents are at records, but annual growth has settled to 2.4% outside London and 3.2% in London
- London is the real pressure point, with listings down 9% and demand up 6% year on year
- Fewer homes are flipping from sale back into rental, a quiet signal of subdued landlord investment
- Regional landlords should plan around low single-digit rent growth; London operators can justify stronger increases
- Track listings, landlord selling rates and financing costs as the next indicators of direction
Frequently asked questions
What is the current average asking rent outside London?
£1,418 per calendar month, a record, according to Rightmove data reported by The Negotiator.
How fast are UK asking rents rising?
Quarterly growth of 1.5% outside London, with annual growth of 2.4% outside London and 3.2% in London.
Why are London rents under more pressure?
Rightmove figures show London listings down 9% year on year, newly listed lets down 7%, and renter demand up 6%.
Are landlords selling off their rental properties?
The share of homes for sale that were previously for rent is steady at around 13%, slightly above last year's 12%, suggesting no surge of exits.
What should investors watch next?
London listing volumes, the share of former rentals coming to market, and any moves in landlord financing and tax that could change supply economics.
