Is there room for your landlord clients to increase rents?

Rents increased by an average of 2.1% in the last year – a slightly slower rate of growth than in 2025, when it was 2.2%. New UK tenancies are costing renters £1,321 per month (or £15,852 a year), as detailed in our latest Rental Market Report (June 2026). 

Rents are rising faster than the national average in 75% of local authorities, with limited supply and shifting demand driving growth. 

Our data shows the cheaper the rent, the greater the year-on-year increase. For example, annual growth peaked at 23.7% in Barrow-in-Furness, where rents are just £682 per calendar month (pcm). In contrast, only 5.8% of local authorities recorded annual rent decreases. 

Widespread price growth is down to 25% fewer rental homes on the market now than before the pandemic, together with renters gravitating towards affordable areas.

Rent values matter more than ever

Tracking local values has always influenced the cost of new tenancies but in 2026, having local market data has become more important than ever.

The Renters’ Rights Act has limited rent rises in England to once per year, reflecting the rules in Scotland and Wales. Any increase must be in line with open-market values and tenants are encouraged to challenge a hike they feel is unfair.

A tribunal will use comparable local properties and recently achieved rents to determine the open market rent. Our data provides a factual starting point for agents, improving outcomes should the rent be challenged.

On the flipside, rents are rising fast in many local authorities and there could be room to increase what tenants pay. Knowing how local rents have increased is vital for fulfilling landlords’ income potential and ensuring increases are fair.

Average rents in UK regions

The North East is home to the UK’s cheapest rent at £766 pcm – a figure that’s risen 3.9% in the last year.

It’s followed by Yorkshire and The Humber (£866 pcm), Scotland (£885 pcm) and Northern Ireland (£889 pcm).

London’s average rent of £2,207 pcm makes it the most expensive region in the UK. The capital is followed by the South East, the East of England and the South West.

City limits: winners and losers

There is a distinct North-South divide when it comes to city rents. The top 10 cheapest cities are all in the North. Barnsley is the most affordable at £646 pcm. The most expensive list is dominated by Southern cities, with the exception of Edinburgh.

10 cheapest UK cities to rent a home 

10 most expensive UK cities to rent a home 

Cities with the greatest annual rent increases

The heat is disappearing from some city rental markets, while it’s building in others. For example, rental growth of 6.5% means there’s only £90 difference between rents in Birmingham and in Telford.

Cities on the slide

Only 10 of the 64 cities we tracked saw rents fall in the last year. The biggest decreases were recorded in Peterborough (-2.2%), Hastings (-2.1%) and Coventry (-2%). 

Regional differences 

London

Some London rents increased by more than double the national average. Merton (4.9%), Richmond upon Thames (4.9%) and Bromley (4.3%) were the top three boroughs for annual growth. This suggests renters are moving from inner to outer London for better value.

London’s cheapest average rents

London’s most expensive average rents

North East

Hartlepool is the cheapest place to rent in the UK, with a low average rent of £580 pcm. Rents in Newcastle upon Tyne now exceed £1,000 pcm.

North East’s cheapest average rents

North East’s most expensive average rents

Yorkshire and the Humber

Rents are almost half the national average in North East Lincolnshire and North

Lincolnshire. York’s rent of £1,186 pcm exceeds the UK average when London is excluded.

Yorkshire and the Humber’s cheapest average rents

Yorkshire and the Humber’s most expensive average rents

Scotland

Rents in East Ayrshire, Dumfries and Galloway and North Ayrshire are some of the UK’s cheapest but each registered above average annual growth. This marks a clear trend for renters seeking cheaper fringe areas that are commutable to Edinburgh and Glasgow.

Scotland’s cheapest average rents

Scotland’s most expensive average rents

East Midlands

Annual rental growth is close to the national average in the East Midlands, indicating the cheapest rents are close to their ceiling limit. In contrast, the region’s most expensive authority (South Northamptonshire) has recorded rent growth that’s more than triple the UK average (6.5%).

East Midlands’ cheapest average rents

East Midlands’ most expensive average rents

Wales

Only one local authority in Wales – Gwynedd – saw rents fall in the last year.  Growth was most notable in the Isle of Anglesey (8.8%) and Monmouthshire (8.7%). 

Wales’s cheapest average rents

Wales’s most expensive average rents

North West

Barrow-in-Furness has seen the biggest rental growth of any UK local authority, recording a jump of 23.7%. The North West’s best value can be found in Burnley, while the Manchester area is the most expensive.

North West’s cheapest average rents

North West’s most expensive average rents

West Midlands

With rents in Birmingham, Solihull, Warwick and Stratford-upon-Avon commonly exceeding £1,000 pcm, people are considering outlying areas like Stoke-on-Trent. In Staffordshire Moorlands, rents are rising three times as fast as the UK average. 

West Midlands’ cheapest average rents

West Midlands’ most expensive average rents

South West

South West lovers should look outside of Cornwall and Somerset for the cheapest rents. Devon hits the affordable spot but it’s a county with above-average rental growth.

South West’s cheapest average rents 

South West’s most expensive average rents

East of England

Fenland in Cambridgeshire was one of the few districts in the UK where rents dropped in the last year. Commuter hotspots are home to the most expensive rents but Epping Forest and St. Albans have seen rental growth dip below the UK average.

East of England’s cheapest average rents

East of England’s most expensive average rents

South East

Rents are still rising in Thanet but there are signs, however, that rents in Hastings have passed their peak. Values here dropped 2.1% in the last year. Oxford has seen the highest level of rental growth in the South East (5.8%).

South East’s cheapest average rents

South East’s most expensive average rents