Annual rental growth accelerates across Great Britain in September

Annual rental growth accelerates across Great Britain in September

New data from Hamptons reveals that rental growth on newly agreed tenancies in Great Britain rose by 2.7% over the past year, marking the fastest increase since late 2024 and signalling a broad-based rise in rents outside London.

Hamptons, using Connells Group data, reported that average rents nationally reached £1,433 per month in September 2026, up from £1,396 the previous year. This marks the tenth consecutive month of accelerating annual rental growth, with the South East and South West regions experiencing growth rates above 4.0% for the first time since September 2024.

The data shows that while rental growth on new lets is accelerating, the overall rental growth across all tenancies, including existing ones, is slowing. The annual rate of growth for all stock dropped from 3.9% in September 2025 to 1.9% in September 2026. However, where rents have increased for existing tenants, the average rise remains substantial at 5.6%, with Scotland seeing the highest average increase at 6.9%.

Details of recent rental growth trends

Hamptons’ analysis highlights a shift from the post-pandemic rental growth pattern, which was previously concentrated in the Midlands and Northern England. The current acceleration is more evenly distributed across the country, including traditionally slower-growing southern regions. The South East and South West have notably seen annual rental increases exceeding 4.0%, reflecting stronger demand or constrained supply in these areas.

For existing tenants facing rent increases, the average hike has remained steady at 5.6%, unchanged from the previous month but higher than the 5.3% recorded a year earlier. Scottish tenants are experiencing the steepest increases, with an average rise of 6.9% when rents change. This regional disparity suggests local market pressures continue to influence rent adjustments.

Despite this, the overall rental growth rate for all tenancies has slowed significantly, halving from 3.9% to 1.9% over the past year. This divergence between growth on new lets and all stock is expected to narrow in the coming months, as Aneisha Beveridge, Head of Research at Hamptons, notes that if the current trend continues, existing tenants may soon face higher rents as well.

Context and implications for landlords and letting agents

The acceleration in rental growth on new lettings, combined with stable but significant increases for existing tenants, reflects ongoing supply and demand imbalances in the private rented sector. While overall rental growth slowing might suggest a softening market, the faster rise on new lets indicates that landlords are able to command higher rents when properties become vacant.

This pattern aligns with broader economic conditions, including inflationary pressures and cost of living challenges, which can influence landlords’ decisions to increase rents to cover rising expenses such as maintenance, energy efficiency improvements, and compliance with evolving regulatory standards.

For letting agents and landlords, the regional spread of rental growth signals the importance of local market knowledge. Areas like the South East and South West may require more active rent reviews and strategic marketing to optimise returns, while landlords in Scotland should prepare for potentially higher rent increases for existing tenants.

Practical effects on portfolio management and tenancy agreements

Landlords with portfolios spanning multiple regions need to monitor local rental trends closely to ensure rents remain competitive yet reflective of market conditions. The widening gap between new let rents and existing tenancy rents suggests that rent reviews and lease renewals may become more frequent or contentious, requiring clear communication and adherence to legal procedures.

Letting agents should advise landlords on appropriate timing and justification for rent increases, particularly in light of the Renters’ Rights Act and other tenancy regulations that govern rent changes. Maintaining accurate records of rent reviews, tenant communications, and market comparables will be essential to support lawful rent adjustments and avoid disputes.

Additionally, landlords should consider the impact of rising rents on tenant retention and affordability. While higher rents may improve income, they could also lead to increased turnover and void periods if tenants seek more affordable alternatives. Strategic investment in property standards and tenant engagement can help mitigate these risks.

Areas of uncertainty and what to watch next

The persistence of the divergence between new let and all stock rental growth rates remains uncertain. Economic factors such as interest rate changes, government housing policies, and inflation trajectories could influence future rental trends. The extent to which higher rents on new lets will translate into increased rents for existing tenants depends on tenancy renewal rates and regulatory constraints.

Landlords and agents should watch for updates on rental regulation, including any amendments to the Renters’ Rights Act or local licensing requirements, which may affect rent setting and possession procedures. Monitoring market data regularly will be crucial to anticipate shifts and adapt strategies accordingly.

Considerations for landlords in the current rental market

• Review tenancy agreements and ensure rent review clauses comply with current legislation and best practice.
• Maintain detailed records of rent increases, tenant communications, and market evidence to support rent changes.
• Assess local market conditions regularly to price rents competitively and maximise occupancy.
• Prepare for potential increased tenant turnover due to affordability pressures and plan for void management.
• Stay informed about ongoing regulatory developments affecting rent setting and tenancy management.

Supporting landlords through rental market changes

Membership of The Landlord Association offers access to comprehensive compliance resources and practical guidance tailored to the evolving rental market. Our new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise rental documentation, record rent reviews, and monitor regulatory updates efficiently.

ORBIT’s developing features include tools for managing tenancy records, tracking rent increase communications, and accessing up-to-date compliance information, which can support landlords in navigating rent adjustments and tenancy renewals. While still in testing, ORBIT aims to streamline property management tasks and keep essential information consolidated.

Explore TLA membership to benefit from expert support, compliance resources, and early access to ORBIT BETA, helping you manage your portfolio effectively amid changing rental dynamics.

Looking ahead, landlords should maintain vigilance on rental market data and regulatory changes to respond proactively to shifts in tenant demand and legal obligations.

Sources: Letting Agent Today