The average asking rent in London has reached a new high of £2,825 per month, according to property website Rightmove. This marks a significant increase as the supply of available rental homes in London has decreased by 9% compared to the previous year, while demand has grown by 6%. Such dynamics are contributing to the escalating rent prices in the capital.
Outside of London, the rental market is also experiencing changes, with the average rent now surpassing £1,400 for the first time. The growth rate of rentals in London is currently at 3.2% annually, higher than the 2.4% growth outside the city. Rightmove’s data suggests that despite a slower pace of rental price growth compared to the past few years, the market remains challenging due to constrained supply.
London rental market pressures
Colleen Babcock from Rightmove highlights that while rental growth has begun to stabilise, the underlying issue of limited rental supply continues to exert upward pressure on prices. The shortage of rental properties is not only a London issue but a nationwide concern. Matt Smith, a mortgage expert at Rightmove, notes that elevated mortgage rates are dissuading new property investments, further tightening the supply.
Furthermore, Kesha Foss-Smith from John D Wood & Co points out that value for money is key as tenants become more selective, especially in the upper market segments. Meanwhile, Aneisha Beveridge from Hamptons emphasises that asking rents only provide a partial view of the market, as increases are also occurring within existing tenancies. The ongoing supply constraints are a core factor in the rising rental costs across the UK.
What this means for newcomers
For newcomers to the UK, the high rental costs in London can be a significant financial burden. With the average asking rent now at £2,825, budgeting for living expenses becomes even more critical. It’s important to be aware of the tenant rights and protections introduced by the Renters Rights Act 2025, which came into force in May 2026. This legislation has reshaped the rental landscape, providing more security for tenants.
Understanding the rental market is key for newcomers looking to rent a property in the UK. The process involves several stages, from finding a property to securing a tenancy agreement. You can find a full guide on how the private rented sector works and the protections available to tenants in our UK renting guide for newcomers.
What you should do
- Understand your rights: Familiarise yourself with the Renters Rights Act 2025, which abolished Section 21 no-fault evictions. This ensures you cannot be evicted without a valid legal reason, offering more stability in your rental arrangements.
- Prepare your finances: Ensure you have a UK bank account for rent payments and plan for other costs such as council tax and utilities. Typically, you will need a security deposit of up to five weeks’ rent and the first month’s rent in advance.
- Conduct a Right to Rent check: Before moving in, landlords must verify your Right to Rent status. Be prepared to provide the necessary documents or an online share code to avoid any delays in securing a rental property.
Frequently asked questions
What is the average rent in London now?
The average asking rent in London has reached a record high of £2,825 per month, according to Rightmove.
Are rents increasing outside of London as well?
Yes, outside of London, the average rent has also reached a new high of £1,418 per month, reflecting a broader trend of rising rental costs across the UK.
What protections do tenants have against eviction?
Under the Renters Rights Act 2025, landlords cannot issue a Section 21 no-fault eviction notice. They must provide a valid legal reason to evict a tenant, offering greater security.
What upfront costs should I expect when renting?
Expect to provide a security deposit capped at five weeks’ rent, and you may also pay a holding deposit capped at one week’s rent. The first month’s rent is typically required in advance.
Source: Evening Standard News: read the original
