Rental growth rates slipped back slightly during the early part of summer according to an analysis by the Hamptons lettings agency, owned by Connells.  

Average rents across Great Britain rose 8.8 per cent over the last 12 months, representing a slowing of growth from the 11.5 per cent recorded in May.  The average monthly rent now stands at £1,163, up from £1,069 at the same time last year. 

For the second month running, rents in London grew faster than anywhere else, rising 12.1 per cent over the last 12 months taking the average monthly rent above the £2,000 mark for the first time ever.  

Inner London rents recorded a record annual growth rate of 35.1 per cent as their strong recovery from the pandemic continued at pace.  

Despite record growth, at a monthly average of £2,675, rents in Inner London remain 6.5 per cent below their October 2019 peak and sit just 1.6 per cent above where they were in January 2020.

 Across Great Britain, the number of rental homes on the market remains well down on pre-pandemic levels, with 54 per cent fewer homes on the market than in June 2019. 

However, stock levels are now slowly rising across Southern England – excluding London – compared to this time last year.  And there are 10 per cent more homes to rent in the country than last June, albeit an increase from record lows.

Aneisha Beveridge, head of research at Hamptons, says: “Rapid rental growth will see tenants handing over a record £63 billion in rent during 2022, the first big jump for five years.  

“Almost all the rise stems from record-breaking rents which have been driven by a lack of homes available to rent alongside investors passing on higher running costs to tenants.  In particular, landlords have been squeezed by rising mortgage rates, alongside more expensive insurance premiums and maintenance costs.”