Rents reach record high as tenants shell out 44% of their pay on a home
Rents across the UK have reached new record levels, according to new data.
The average advertised rent for a house in London is £2,736, which is 1.6 per cent higher than a year ago.
Rightmove’s Rental Trends Tracker said average advertised rents outside London were £1,385, up 3.1 per cent on the same point last year.
The annual increase in rents outside London is 3.1 percent, the lowest since the third quarter of 2020.
But tenants will suffer as rents outside London rose by more than £20 compared to the previous quarter.
The cost of rent accounts for 44 percent of the average salary; This rate was 40 percent five years ago.
We’re paying the price: Rents in and outside London hit new record highs, Rightmove says
Rightmove said affordability for tenants and landlords was still ‘very stretched’.
Tom Darling, director of the Tenants’ Reform Coalition, told the Daily Mail: ‘The cost of rent is out of control; Our survey shows that almost a third of renters struggle to afford just basic needs like food due to high rents.
‘Unattainable rents are pushing families out of their homes and communities, and forcing workers in our cities to live in house sharing or leave altogether.’
He added: ‘The Tenants’ Bill of Rights will finally end section 21 and provide vital new protections for England’s 12 million private tenants, but it will not close the affordability crisis.
‘The government should impose a cap on rent increases to prevent them from rising faster than usual.’ inflation or set up a national rent affordability commission to look into ways to make wages and rent truly affordable.’
What can tenants do?
Tenants faced with rising rents should check whether their landlord is doing everything right.
Mike Hayne, business development manager at HCB Solicitors, said: ‘The first step is to check your tenancy agreement; If you have a fixed-term contract, the rent usually does not increase unless you agree or the fixed period ends.
On the rise: Average rental costs in the north-west of England rose by over 5% last year
‘Landlords must also give appropriate written notice before increasing the rent; For permanent or periodic rentals, notice is usually given at least one month in advance.
‘If the new amount seems too high, it’s worth checking with your landlord or estate agent.
‘A little open and honest communication can often lead to compromise.
‘But if you’re still worried, especially if the increase doesn’t reflect what’s happening in the local market, don’t hesitate to seek legal advice. After all, any rent increase must be fair and justified. Open communication and transparency from both parties is key to keeping things on good terms.’
Where are rents increasing?
Digging into the details of Rightmove’s findings reveals the scale of the situation many tenants face.
Average advertised rents in the north west of England are 5.1 per cent higher than a year ago at £1,241.
Average rents in Yorkshire and the Humber are 4.1 per cent higher than last year, with tenants paying around £1,093 a month. Returns for homeowners in Yorkshire and the Humber are the highest in Britain, at 7.2 per cent, up 0.3 per cent annually.
Fulwood, Lancashire, tops Rightmove’s rental price hotspot rankings. Average advertised rents in Fulwood rose from £970 to £1,284 last year; This represents a significant annual increase of 32 percent.
Average rents in Keighley, West Yorkshire, rose by 27 per cent year on year, from £815 in the third quarter of 2024 to £1,038 in the third quarter of this year.
Other places where tenants’ rental costs have risen sharply in the past year include Frome in Somerset, Newquay in Cornwall and Gainsborough in Lincolnshire.
How are the homeowners doing?
While tenants’ rental costs have increased, the pace of new rental properties coming to the market has also slowed.
The number of new rental listings hitting the market is only 1 percent higher than this time last year; This figure is the lowest seen so far in 2025.
Hosts face quagmire of uncertainty as Rachel Reeves wait is terrifying Autumn Budget rolling.
stamp duty Rightmove said the increases, possible tax changes in the Autumn Budget and the Tenants’ Rights Bill should be considered carefully by landlords.
There are rumors that Reeves could force landlords to pay national insurance contributions on their rental income.
New average interest rate buy-to-let mortgages According to UK Finance, this rate is 4.87 percent. Although down from last year, this is almost double the 2.93 percent seen before the 2022 mini-budget.
In a recent survey by Goodlord, one in three homeowners said they were considering exiting the market in the future.
While two-thirds of landlords surveyed said they felt unsupported by the government, only 43 per cent said they were fully aware of the Tenants’ Bill of Rights and were ready for changes.
Rightmove’s property expert Colleen Babcock said: ‘The majority of landlords want to stay in the market and even grow their portfolio; This is a positive development for tenants, but there are clearly challenges for those looking to invest in rental property.
‘Persistently high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty over legislation such as the Tenants’ Bill of Rights and what will and won’t be included in the upcoming Autumn Budget is not helpful when making financial investments.
‘Landlords considering selling within the next year said the legislative changes were their biggest source of frustration.’
Daniel Fisher, Lettings Manager at John D Wood & Co, said: ‘Tenant demand has decreased as economic and political uncertainty has made people more cautious about moving, with many businesses reducing relocation and some tenants leaving London altogether.
‘This has led to more re-let properties coming to the market, even as the overall number of landlords declines.
‘At the same time, many landlords are hesitant to invest due to limited capital growth, changing tax rules and ongoing uncertainty over the Tenants’ Bill of Rights and the Budget.’
He added: ‘The result is a slower, more cautious market that is likely to remain unstable over the next year; but it also presents opportunities for well-capitalised landlords to expand as others emerge, and for tenants to benefit from a wider choice of homes.’
Do you have a real estate story? Email jane.denton@dailymail.co.uk
