Rental growth accelerates for tenth consecutive month in UK

Rental growth accelerates for tenth consecutive month in UK

Newly agreed rents across Great Britain rose by 2.7% over the last year to September, marking the fastest annual rental growth since November 2024, according to lettings agency Hamptons.

Rental growth on newly agreed tenancies has continued to accelerate for the tenth straight month as of September 2026. This trend affects landlords and letting agents across Great Britain, with average rents increasing to £1,433 per month, up from £1,396 in the previous September. The rise is more geographically balanced than the post-pandemic surge, which was concentrated in the Midlands and Northern England, with the South East and South West regions now also experiencing growth above 4.0% annually for the first time since September 2024.

Hamptons’ analysis highlights that while tenants moving into new tenancies are facing higher rents, the increases for existing tenants where rents have been raised remain significant, averaging 5.6%. Scotland continues to see the highest average increases at 6.9% for tenants with rent changes. However, overall rental growth for all tenants, including those who have not moved, has slowed, with the annual rate dropping from 3.9% in September 2025 to 1.9% in September 2026. Industry experts suggest this divergence between new let and all stock rental growth is unlikely to be sustained in the long term.

Hamptons data reveals shifting rental market dynamics

Hamptons’ research, based on data from Connells Group, shows a rental market where newly agreed rents are rising faster than the overall stock. This pattern suggests that landlords are able to command higher rents when a property is re-let, reflecting ongoing demand pressures and possibly supply constraints in the private rented sector. The increase in rents for existing tenants who face rent rises also indicates that landlords are adjusting rents upwards within tenancies, though this is less widespread than for new lets.

The regional spread of rental growth has broadened. The South East and South West regions, which had lagged behind the Midlands and Northern England in earlier periods, have now recorded annual rental growth exceeding 4.0%. This shift points to a more uniform upward pressure on rents across the country, rather than isolated regional spikes. Scotland’s higher average rent increases for tenants with rent changes may reflect specific local market conditions or regulatory factors influencing landlord behaviour.

Context for landlords and letting agents amid rental growth

The acceleration in rental growth comes at a time when the rental sector faces multiple challenges, including evolving regulation, tenant affordability concerns, and economic pressures. The Renters’ Rights Act and other legislative changes have altered the relationship between landlords and tenants, affecting rent-setting and tenancy management practices. The current rental growth trend could influence landlords’ decisions on portfolio management, rent reviews, and tenancy renewals.

For letting agents, the data underscores the importance of market awareness and accurate rent benchmarking to advise landlords effectively. Understanding regional variations and the distinction between new let and existing tenancy rent changes is crucial for setting expectations and managing tenant relations. The slowing growth in all stock rents suggests that while headline increases grab attention, the broader market may be stabilising, which could impact long-term rental income projections.

Practical implications of rising rents for landlords and tenants

Landlords with properties coming up for re-let may find opportunities to increase rents in line with market growth, particularly outside London where growth is now more evenly spread. However, they must balance this with tenant retention considerations and compliance with any local rent control measures or tenancy agreements. The higher average rent increases for existing tenants where rents are reviewed indicate that landlords are increasingly exercising rent review clauses, but must ensure these are implemented fairly and in accordance with legal requirements.

For tenants, the data suggests that moving home currently carries a higher risk of rent increases than staying put, but if the trend of rising new let rents continues, existing tenants may face more frequent or larger rent increases in the future. This dynamic could affect tenant demand patterns and mobility within the rental market.

Uncertainties and what landlords should monitor

While the current data shows accelerating rental growth for new lets, the longer-term trajectory remains uncertain. Economic factors such as inflation, wage growth, and interest rates will influence tenant affordability and landlord costs. Regulatory developments, including any new rent control proposals or changes to tenancy laws, could alter the balance of power in the market and affect rent setting.

Landlords should keep abreast of local market conditions and regulatory updates, particularly in regions showing the strongest growth. Monitoring the gap between new let and all stock rental growth will be important to anticipate potential pressures on existing tenants and the sustainability of rent increases. Staying informed about tenant affordability and demand trends will help landlords make prudent decisions about rent reviews and portfolio strategy.

What landlords should consider now

• Review upcoming tenancy renewals and re-lets with current market data to set competitive yet fair rents.
• Ensure rent review clauses are clearly understood and legally compliant to avoid disputes.
• Monitor regional rental trends and economic indicators to anticipate changes in tenant demand and affordability.
• Prepare for potential regulatory changes that could impact rent setting and tenancy management.
• Communicate transparently with tenants about rent increases and support options to maintain good landlord-tenant relationships.

Supporting landlords with rental market challenges

Membership of The Landlord Association (TLA) offers access to up-to-date compliance resources and market insights that help landlords and letting agents respond effectively to rental growth trends. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist members in organising their portfolios, managing rental documentation, and recording key tenancy actions. These tools can support landlords in monitoring rent reviews, tracking regulatory developments, and maintaining evidence of compliance with tenancy law and safety obligations.

Exploring TLA membership and ORBIT access can provide practical support in adapting to changing rental market conditions and regulatory requirements, helping landlords stay informed and organised.

Looking ahead, landlords should continue to track rental growth patterns closely and prepare for evolving tenant needs and regulatory frameworks to manage their portfolios sustainably.

Sources: Landlord Today