What's happening with rental prices?
The average advertised rent of homes coming onto the market outside London rose by 1.9% in Q2 2026 to a new record of £1,397 per calendar month, according to Rightmove's latest rental market data.
Average advertised rents outside London are now 2.3% higher than a year ago, up from annual growth of 1.6% in Q1.
Average rent outside London reached £1,397 in Q2 2026 (+1.9% quarterly, +2.3% annually), up from £1,370 in Q1 2026.
Average rent in Greater London reached £2,791 in Q2 2026 (+2.0% quarterly, +2.9% annually), up from £2,736 in Q1 2026.
Inner London averaged £3,299 per month (+2.2% quarterly, +3.4% annually), while Outer London averaged £2,418 (+1.8% quarterly, +2.4% annually).
While rent growth has picked back up following a flat start to the year, annual increases remain significantly below the double-digit growth recorded during the peak of rental market competition in 2022 and 2023.
Affordability remains a key consideration for renters, with annual wage growth easing to 4.4% and many tenants becoming increasingly price-conscious, particularly in higher-priced areas. This is helping to keep rental growth at more sustainable levels than in recent years, despite rents continuing to edge higher.
In London, average advertised rents rose by 2.0% this quarter to that new record of £2,791 per calendar month, with annual growth accelerating to 2.9%. This quarter's 2.0% increase is the largest quarterly rise in the capital since 2023, driven by Inner London rents.
What's happening with rental market activity?
The number of available rental homes dropped below the previous year's level this quarter for the first time since 2022. In the post-pandemic market, the number of homes to rent reached record low levels and had been steadily increasing since, but the total number of homes to rent is now 1% lower than a year ago.
This decline in overall rental supply appears to be driven more by a drop in newly listed properties for rent than by an increase in the speed of the market. Despite this, the balance between supply and demand in the rental market appears to be stabilising.
Competition between tenants remains significantly lower than at its peak, with the average rental home now receiving 10 enquiries, compared with 11 a year ago and 22 at the height of the market in 2022, though still higher than the pre-pandemic average of 5 enquiries per home.
Regional differences remain wide. Northern regions continue to outperform on annual rent growth, with the North East and North West both recording increases of 4.1%, compared with 1.5% in the East Midlands and East of England.
London currently has the closest balance between supply and demand, with an average of 8 enquiries per rental property, while the North West is seeing the largest mismatch, at 14 enquiries per property, highlighting continued strong demand relative to available homes.
This report marks the first time data has been analysed following the introduction of the Renters' Rights Act in May. Though it is still early days, supply, demand and pricing trends appear steady and in line with seasonal norms.
What's happening with buy-to-let mortgage rates?
Rightmove's daily buy-to-let mortgage tracker indicates that borrowing costs for landlords have started to ease slightly, with the average two-year fixed buy-to-let mortgage rate with no fee falling to 5.55%, down from 5.67% last month but up from 5.20% a year ago.
"We're seeing new record average rents advertised in both London and Great Britain outside of the capital, however, overall, we're seeing rents return to more familiar seasonal patterns and stable growth," said Colleen Babcock, property expert at Rightmove.
She continued: "Even though supply is no longer increasing, the market remains much more balanced than it was at the peak of competition in 2022. Regional trends also continue to vary significantly across the country, with more affordable northern areas still seeing some of the strongest rental growth.
"London has seen a notable increase in rents this quarter, and also the largest drop in available rental supply, underlining how local supply and demand dynamics continue to shape rental pricing."
"The Manchester rental market is continuing to perform well, with average rents increasing by up to 2% compared with last year," said Darren Bolton, lettings valuer at Julie Twist Properties in Manchester city centre.
"However, we're seeing much more stock available than we were a few years ago, giving tenants greater choice and reducing some of the intense competition that characterised the market at its peak."
He added: "For renters, that's creating a more balanced and positive experience, with a wider range of properties to consider and less pressure to make quick decisions. For landlords, standing out has become more important. Properties that are well presented, well maintained and priced realistically for the current market are attracting the strongest levels of interest."
"While headline rent growth remains relatively modest compared with the peaks seen in recent years, the fall in newly listed rental homes should not be overlooked," said Kim Lidbury, president of ARLA Propertymark, the Association of Residential Letting Agents.
"If fewer landlords are bringing properties to market over a sustained period, this risks creating a more persistent supply challenge that may place renewed upward pressure on rents in the months ahead."
She added: "The data also reinforces the importance of professional property management in a changing market. As legislative requirements continue to evolve, landlords who access expert advice and invest in maintaining high-quality homes are more likely to retain tenants, reduce costly void periods and support a more stable private rented sector.
"Increasing confidence for responsible landlords to remain in, or enter, the market will be essential if the sector is to keep pace with long-term housing demand."
