Average rents across the United Kingdom rose again in July, with Greater London continuing to post the strongest annual increase, according to the latest HomeLet Rental Index.
July rents climb nationally, London leads
Overall, the average monthly rent reached £1,369 in July, up 1.2% from June’s £1,353 and 4.3% higher than a year earlier. Outside the capital, the figure moved to £1,170, reflecting a 1.1% monthly gain and a 3.4% rise over the previous year. The gap between the national average and the capital’s level widened, showing the premium that tenants pay to live in London’s densely populated boroughs where supply is increasingly scarce.
In the capital, average rents hit £2,207 per month, also a 1.2% increase from June. The 6.0% annual rise makes London the region with the steepest year‑on‑year growth.
Regional patterns show broad rent pressure
Eleven of the twelve regions recorded month‑on‑month increases in July. Scotland posted the biggest monthly jump at 2.6%, followed by the South East at 1.4% and both the North East and North West at 1.3%. The consistency of these gains points to a nationwide tightening of the rental market, where even traditionally lower‑cost areas are feeling the impact of heightened demand.
After London, the East Midlands posted the strongest annual growth at 4.7%, with Scotland close behind at 4.1% and the North East at 4.0%. Northern Ireland was the sole region to see a monthly decline, slipping 0.5% from June.
Mike Dawson, head of sales at HomeLet and Let Alliance, said, “This month’s Rental Index reinforces the picture of a market where demand for good‑quality rental homes remains consistently strong. Rents are still nudging upwards in the majority of regions, with London and several parts of the Midlands and Scotland showing particularly notable annual growth.”
The data also highlight a shift in regional patterns. While London’s rent level stays far above the national average, the East Midlands’ jump to second‑place in annual growth indicates that renters are feeling pressure beyond the capital’s borders. This could mean tenants in cities like Nottingham or Leicester may need to allocate a larger share of their income to housing, even if their absolute rent remains lower than London’s.
