London rents hit record £2,825 while nationwide supply tightens
Average asking rent in London rose to a new high of £2,825 per month, and rents outside the capital surpassed £1,400 for the first time as available rental homes fell.
According to data from Rightmove, the average advertised rent for a London home hit a fresh record of £2,825 per calendar month, while the typical rent outside the capital rose to £1,418, also a new high. Annual rental growth in the capital stands at 3.2%, outpacing the 2.4% growth seen in the rest of the UK. The number of rental properties on the market is 2% lower than a year ago, and renter demand has fallen by roughly the same amount, creating a more balanced but still pressured market.
Property expert Colleen Babcock said the headline figures mask a slowdown in rent growth compared with the rapid pace of recent years. Mortgage specialist Matt Smith highlighted landlords' challenges with rising mortgage costs as fixed-rate deals expire. Industry voices from John D Wood & Co and Hamptons stressed the ongoing shortage of rental homes as the core driver of price pressure.
Why it matters
Higher rents and limited supply affect housing affordability for millions of UK renters.
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