Rents rise as tenant demand rebounds

Landlords are seeing rents rise again as tenant demand picks up amid tightening property supply tightens.

Hamptons said the annual pace of rent growth on newly let homes across Great Britain doubled from 0.5% in February to 1% in March.

Inner London drove much of that increase, with rents there climbing 4.1% year-on-year to March, reversing declines seen earlier in 2025.

The recent rent rises follow a period where prices had been falling at the start of the year.

Tenant demand is up

The firm’s head of research, Aneisha Beveridge, said: “While rents fell last year, early signs suggest the pace of rental growth is beginning to pick up as tenant demand rebounds and mortgage rates rise.

“The falls recorded in 2025 have already been wiped out, while the 24% annual increase in tenants starting the search for a new home in March was the largest since our records began.”

Tenancy renewal prices have also increased with rents rising 3.1% annually in March, up from 2.2% the previous month.

All regions saw demand rise

Hamptons also says that tenant activity has also strengthened, and in March there was a 24% annual increase in people searching for a new home.

That is the largest rise since records began, with every region posting double-digit growth in demand.

At the same time, availability remains constrained.

There were 1% fewer homes on the market than a year ago, while supply is down 33% compared with March 2019, limiting choice for renters across the country.

Rents around Britain

In the first quarter of 2026, 6% of homes were let above their advertised price, down from 56% during the same period in 2021.

That dynamic may change again under new rules since March was the penultimate month landlords in England could accept offers above the listed price.

The firm says that is altering how rents are set going forward rather than the level ultimately achieved.

London recorded an average monthly rent of £2,305 for new lets, with inner areas reaching £2,733.

In the Midlands, new agreements averaged £1,046, while in the North they stood at £955.

Wales posted £879 and Scotland £1,014.