The average advertised rent of homes coming onto the market outside London rose by 1.9% in Q2 to a new record of £1,397 per calendar month, says Rightmove.

Average advertised rents outside London are now 2.3% higher than a year ago, up from annual growth of 1.6% in Q1.

While rent growth has picked back up following a flat start to the year, annual increases remain significantly below the double-digit growth recorded during the peak of the rental market competition in 2022 and 2023.

The portal says affordability remains a key consideration for renters, with annual wage growth easing to 4.4% and many tenants becoming increasingly price-conscious, particularly in higher-priced areas. 

This is helping to keep rental growth at more sustainable levels than in recent years, despite rents continuing to edge higher.

In London, average advertised rents rose by 2.0% this quarter to a new record of £2,791 per calendar month, with annual growth accelerating to 2.9%.

This quarter’s 2.0% increase in rents in the capital is the largest quarterly increase since 2023 and is driven by Inner London rents.

Rightmove’s property expert Colleen Babcock says: “We’re seeing new record average rents advertised in both London and Great Britain outside of the capital, however overall, we’re seeing rents return to more familiar seasonal patterns and stable growth.”

“Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022. 

“Regional trends also continue to vary significantly across the country, with more affordable northern areas still seeing some of the strongest rental growth. 

“London has seen a notable increase in rents this quarter, and also the largest drop in available rental supply, underlining how local supply and demand dynamics continue to shape rental pricing.”