UK Rents Rise 4.3% Year-on-Year as July Data Shows Regional Divide Widening
Average UK rents hit £1,369 in July 2026, up 4.3% annually, with London seeing strongest growth at 6.0%. Outside the capital, rents grew just 3.4%, highlighting persistent regional inequality driven by undersupply.
Latest rent growth shows market cooling amid persistent shortage
The average monthly rent across the UK rose to £1,369 in July 2026, an increase of 1.2% from June. Compared with July 2025, this equates to an annual rise of 4.3%.
In London, average rents now stand at £2,207, up 1.2% on the month. Over the past year, Greater London has seen the strongest uplift of any region, with a 6.0% annual increase. Outside Greater London, average rents reached £1,170 in July, 1.1% higher than June and 3.4% above July last year.
What's driving the divide
Rents are rising faster than the national average in 75% of local areas. This spike is being driven by shortage in available rental housing, with 25% fewer rental homes on the market now than before the pandemic.
The regional split reflects broader market dynamics: in 2026 the cheapest regions are seeing the fastest rental growth, while the most expensive areas have slowed sharply or stalled. This suggests that tenants in expensive urban areas are finally hitting affordability ceilings, while those in smaller towns and regional hubs face steeper pressure.
If you're relocating to the UK as an expat or student: London continues to command premium prices, but regional hubs now offer increasingly competitive rents—often with lower growth rates. Outside the capital, you may face faster annual increases. Understanding your local market before signing is critical; rents in your chosen area could rise 3–6% annually depending on the region.
Sources
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