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The cost of private renting is falling as lower rates slowly ripple out from London, according to the latest research.
A year ago, landlords across the country were celebrating record rent levels - but now tenants are paying 0.5 percent less, says data collected by property firm Hamptons.
The drop in rents started in London in October 2024 and has slowly spread across every region.
Inner London rents are averaging £2,795 a month - £135 monthly below their 2024 high.
Hamptons says rents in the South East are unchanged compared to last year. In the South West and East, rental growth is running at 0.3 percent and 0.8 percent, respectively.
"This means rents may fall in other regions across the South of England in the coming months," said the firm's lead analyst David Fell.
"One reason rents are starting to shift downwards is that fewer would-be tenants are looking for homes, and more homes are on the market. In October, there were 12 percent fewer tenants searching for a new place to live compared to last year, and 8 percent more properties to choose from."
The research also notes that while the cost of new tenancies is falling, tenancy renewals are becoming more expensive.
The average cost of renewing a tenancy rose 4 percent to £1,130 monthly - a new record high.
"October marks the second anniversary of rent increases for tenants renewing, outpacing the increases recorded by tenants moving into a new home. Over this period, newly agreed rent prices have risen 3.7 percent and renewals prices by 11 percent," said Fell.
| Region | New lets | Tenancy renewals | ||
|---|---|---|---|---|
| Average rent pcm | Annual change | Average rent pcm | Annual change | |
| Greater London | £2,349 | -2.70% | £2,279 | 3.20% |
| Inner London | £2,795 | -4.60% | £2,801 | 3.00% |
| Outer London | £2,021 | -1.00% | £1,895 | 3.30% |
| South | £1,362 | 0.30% | £1,275 | 3.90% |
| East of England | £1,272 | 0.80% | £1,242 | 5.70% |
| South East | £1,477 | 0.00% | £1,379 | 2.90% |
| South West | £1,277 | 0.30% | £1,150 | 3.90% |
| Midlands | £1,056 | 1.40% | £965 | 5.90% |
| East Midlands | £1,005 | 0.50% | £919 | 5.30% |
| West Midlands | £1,100 | 2.00% | £1,004 | 6.40% |
| North | £996 | 1.40% | £884 | 4.60% |
| North East | £928 | 3.80% | £756 | 6.60% |
| North West | £1,051 | 1.30% | £915 | 4.50% |
| Yorkshire & The Humber | £953 | 0.50% | £900 | 4.00% |
| Wales | £876 | -0.20% | £817 | 2.60% |
| UK | £1,399 | -0.50% | £1,310 | 4.00% |
| UK excluding London | £1,156 | 0.80% | £1,062 | 4.40% |
Source: Hamptons