London leads rental growth as rents continue to climb

Rents continue to rise across the UK following the Renters’ Rights Act, new research reveals.

HomeLet’s rental index reveals the average monthly rent across the UK reached £1,353 in June 2026, up 1.0% from £1,340 in May.

The news comes as the Renters’ Rights Act came into force on 1 May.

Pricing has become more delicate

According to the data, excluding Greater London, where higher rents tend to skew the national average, the average monthly rent across the rest of the UK rose to £1,157, up 1.0% from £1,146 in May and 2.7% higher than in June last year.

Average rent in Greater London now stands at £2,181, up 0.9% on May. Over the past twelve months, rents in the capital have risen by 5.0% – the strongest growth of any region.

Kristjan Byfield, co-founder of Depositary, discussed the latest pricing trends, saying: “The statistics show one story, but on the ground, we’re seeing London’s rental market settle into a new rhythm. The latest figures suggest rental growth, but I’d view much of that as a market repricing following the Renters’ Rights Act rather than a significant change in tenant demand.

“Activity is beginning to build ahead of the summer market, although tenants are planning much further ahead than they did historically, often starting their search two months before they intend to move.

“Pricing has also become far more delicate. Without the ability to accept offers above the asking rent, getting the launch price right has never been more important. Price too high and you lose momentum, too low and you risk underselling your landlord. Some aspects of the market may evolve, but human behaviour rarely changes as quickly as legislation.”

Steady rental price growth

The regional picture is largely one of steady growth, with ten of the twelve regions seeing monthly rental increases.

Scotland led the month‑on‑month gains with a 3.6% rise, followed by Wales at 1.9% and the North East at 1.4%.

The news comes as Nationwide’s house price index reveals annual house price growth picked up to 2.2% in June, rising from 1.7% in May.