Record high for rents as normal market resumes

Rents across Great Britain hit another record high in February, averaging £1,230 pcm for a newly let home.  

The figure - which comes from the Hamptons lettings agency - is is up 10 per cent year-on-year, marking the second strongest annual increase since the firm’s records began.

London regained its place at the top of the rental growth charts.  Here, the average rent rose to £2,161 pcm in February, 13.8 per cent higher than the same month last year.  Growth was evenly matched across both Inner and Outer London, a reversal of last year when Inner London rents were recovering from their post-Covid lows.

Rental growth in the Midlands and North isn’t too far behind , with annual growth of 10.7 and 9.3 per cent respectively.  The Southern regions, however, where affordability is most stretched, are lagging behind. 

In a reversal of last year, smaller homes are seeing the strongest rent rises.  

The average one-bed rent increased 13 per cent year-on-year in February, nearly triple the 4.5 per cent rate recorded in February 2022.  Meanwhile rental growth for a three-bed home has decelerated from 10.6 per cent a year ago to 8.7 per cent in February 2023.

Aneisha Beveridge, head of research at Hamptons, says: “Rental growth accelerated last month, marking the second strongest rate of growth recorded since our lettings index began.  

“The annual increase will cost the average tenant who moves into a new home in Great Britain an additional £1,344 each year.  While the number of rental homes coming onto the market rose for the fifth consecutive month, unlike in the sales market, demand from new renters remains up year-on-year too.”