Read the latest quarterly Rental Trends Tracker
Headlines from the July report:
New record rents as rental supply falls for first time since 2022
- Average advertised rents outside of London remained rose by 1.9% this quarter to a new record of £1,397 per calendar month, the first quarterly rent record since Q3 2025.
- The number of available rental homes fell below the previous year’s level for the first time since 2022, with rental supply now 1% lower than a year ago, driven by a drop in newly listed properties.
- Despite this drop in supply, the overall balance between supply and demand remains considerably more stable than during the peak of rental market competition.
- Average advertised rents in London rose by 2.0% this quarter to a record £2,791 per calendar month, the biggest quarterly increase in the capital since 2023.
What’s happening with rental market activity?
- The average rental home now receives 10 enquiries, compared with 11 a year ago and 22 at the peak of competition in 2022, though still above the pre-pandemic average of 5 enquiries per home
- Regional differences remain significant, with London averaging 8 enquiries per property, compared with 14 in the North West
- The North East and North West recorded the strongest annual rental growth at 4.1%, compared with 1.5% in the East Midlands and East of England
- The first quarter following the introduction of the Renters’ Rights Act suggests supply, demand and pricing trends remain steady and in line with seasonal norms.
Buy-to-let mortgage rates ease slightly:
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- Borrowing costs for landlords have started to ease slightly, although mortgage rates remain higher than a year ago
- Rightmove’s daily buy-to-let mortgage tracker shows that the average buy-to-let mortgage rate is 5.55%, down from 5.67% last month but up from 5.20% last year.
For more details, including regional trends in price, yield, supply and demand, read the full report:
The rental market at-a-glance:
“We’re seeing new record average rents 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.”
Colleen Babcock, Rightmove’s property expert
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