THE PROPERTY FILTER TAKE
Average UK rents outside London hit a new record of £1,397 pcm in Q2 2026, up 2.3% year-on-year; London reached £2,791 pcm with 2.9% annual growth.
Steady, affordable rent growth is better for a multi-property portfolio than the spikes of 2022-23 - it keeps tenant retention high, arrears risk lower, and cashflow more predictable across your book.
You may wish to review your current rents against regional comparables and consider whether your stress test figures still hold at today's rates.
Average advertised rents outside London reached a new record of £1,397 per calendar month (pcm) in Q2 2026, according to Letting Agent Today (16 July 2026). That is up 1.9% on the quarter and 2.3% year-on-year - and the market is still moving higher, just at a pace that tenants can absorb.
What the Numbers Mean for Your Portfolio
From a portfolio perspective, the acceleration from Q1's 1.6% annual growth to 2.3% in Q2 is worth noting - but context matters here. Annual growth remains far below the double-digit figures recorded during the 2022-23 rental competition peak (Letting Agent Today, 16 July 2026). That is not a problem. That is a healthier market.
Annual wage growth has eased to 4.4% (Letting Agent Today, 16 July 2026), making tenants in higher-priced areas more price-conscious. When rents climb broadly in line with wages rather than outpacing them, tenants stay longer and default less. If you hold five or more properties, that dynamic matters more to your annual return than the headline rent figure does.
You may wish to check whether your current rent levels are working hard enough for the yield you need. The Property Filter stress test calculator lets you model yield against finance costs across different rent assumptions.
Regional Splits and the London Effect
Not all markets are moving at the same pace. Northern areas continue to post some of the strongest rental growth nationally, while London is tightening from a different direction (Letting Agent Today, 16 July 2026).
London average rents rose 2.0% in Q2 to a new record of £2,791 pcm, the largest quarterly increase since 2023 (Letting Agent Today, 16 July 2026). It was driven by Inner London, where rental supply saw the sharpest falls. Annual growth in the capital accelerated to 2.9%. If you hold in zone two or three, that supply squeeze is working in your favour right now.
For investors mapping where to place the next acquisition, the Property Filter investment strategies guide covers how to read regional supply-demand signals into a buy decision.
Stability Is the Real Story
Rightmove's property expert Colleen Babcock describes rents returning to "more familiar seasonal patterns and stable growth" (Letting Agent Today, 16 July 2026). Supply is no longer rising, she notes, but the market remains "much more balanced than it was at the peak of competition in 2022."
Over the cycle, this is the operating condition that rewards disciplined portfolio building. Rents are rising, voids should be manageable, and the political heat around unaffordable rents has eased. That combination is more valuable to a landlord than a sharp headline spike that burns tenants out and invites regulatory responses. For guidance on building a resilient strategy in this environment, the Property Filter free resources hub is a useful starting point.
Key takeaways
Rents outside London hit a record £1,397 pcm in Q2 2026, up 2.3% year-on-year.
London reached a record £2,791 pcm, with 2.9% annual growth and the largest quarterly rise since 2023.
Annual wage growth of 4.4% is moderating rent increases and keeping affordability pressures in check.
Supply is no longer growing, but the market remains more balanced than the 2022-23 peak.
Northern areas continue to record some of the strongest rental growth nationally.
Average advertised rents outside London reached a new record of £1,397 per calendar month (pcm) in Q2 2026, according to Letting Agent Today (16 July 2026). That is up 1.9% on the quarter and 2.3% year-on-year - and the market is still moving higher, just at a pace that tenants can absorb.
What the Numbers Mean for Your Portfolio
From a portfolio perspective, the acceleration from Q1's 1.6% annual growth to 2.3% in Q2 is worth noting - but context matters here. Annual growth remains far below the double-digit figures recorded during the 2022-23 rental competition peak (Letting Agent Today, 16 July 2026). That is not a problem. That is a healthier market.
Annual wage growth has eased to 4.4% (Letting Agent Today, 16 July 2026), making tenants in higher-priced areas more price-conscious. When rents climb broadly in line with wages rather than outpacing them, tenants stay longer and default less. If you hold five or more properties, that dynamic matters more to your annual return than the headline rent figure does.
You may wish to check whether your current rent levels are working hard enough for the yield you need. The Property Filter stress test calculator lets you model yield against finance costs across different rent assumptions.
Regional Splits and the London Effect
Not all markets are moving at the same pace. Northern areas continue to post some of the strongest rental growth nationally, while London is tightening from a different direction (Letting Agent Today, 16 July 2026).
London average rents rose 2.0% in Q2 to a new record of £2,791 pcm, the largest quarterly increase since 2023 (Letting Agent Today, 16 July 2026). It was driven by Inner London, where rental supply saw the sharpest falls. Annual growth in the capital accelerated to 2.9%. If you hold in zone two or three, that supply squeeze is working in your favour right now.
For investors mapping where to place the next acquisition, the Property Filter investment strategies guide covers how to read regional supply-demand signals into a buy decision.
Stability Is the Real Story
Rightmove's property expert Colleen Babcock describes rents returning to "more familiar seasonal patterns and stable growth" (Letting Agent Today, 16 July 2026). Supply is no longer rising, she notes, but the market remains "much more balanced than it was at the peak of competition in 2022."
Over the cycle, this is the operating condition that rewards disciplined portfolio building. Rents are rising, voids should be manageable, and the political heat around unaffordable rents has eased. That combination is more valuable to a landlord than a sharp headline spike that burns tenants out and invites regulatory responses. For guidance on building a resilient strategy in this environment, the Property Filter free resources hub is a useful starting point.
Key takeaways
Rents outside London hit a record £1,397 pcm in Q2 2026, up 2.3% year-on-year.
London reached a record £2,791 pcm, with 2.9% annual growth and the largest quarterly rise since 2023.
Annual wage growth of 4.4% is moderating rent increases and keeping affordability pressures in check.
Supply is no longer growing, but the market remains more balanced than the 2022-23 peak.
Northern areas continue to record some of the strongest rental growth nationally.
Frequently asked questions
Frequently asked questions
Why are UK rents at a record high if the market is described as more stable?
How does 4.4% wage growth affect buy-to-let yields?
Is London worth the higher entry cost given current rental trends?
Should I review my rents based on this data?
