By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Rent rises stabilising across the country says Hamptons

The annual pace of rental growth on newly let homes in Great Britain continued to slow in April, with growth falling from 6.7% in the year to March to 6.4% according to lettings agency Hamptons.  

However, rents edged up 0.8% month on month, the largest increase this year. 

Hamptons says annual growth looks set to stabilise around the 6% mark, which is significantly higher than the 2.5% average annual growth rate recorded pre-Covid.


Strong rental growth on the open market means it has taken an average of 20 months for the average rent to rise by the equivalent cost of an extra bedroom.  This essentially means that tenants have lost a bedroom with the average one-bed now costing the same as the average two-bed did 20 months ago.  

And the average two-bed rent has also risen to the level of the average three-bed rent 20 months ago.

When rental growth for newly let homes peaked late last year, it took just 14 months for average rents to rise by the equivalent of a bedroom.  This is the shortest period on record since the Hamptons lettings index began.  

This compares to an average of between 50 and 70 months pre-Covid when rental growth was typically running at between 2% and 3%.

Aneisha Beveridge, head of research at Hamptons, says: “Many tenants had enjoyed years of no or below-inflation rent increases, particularly when rents weren’t rising much on the open market and mortgage costs were falling.  Landlords were often content with a small gap between the market rate for their home and what their tenant was paying.  However, over the last two years, strong rental growth on the open market has meant that the gap between market rates and what some tenants were paying rose significantly.

“Tenants fortunate enough to be protected from higher rents by their landlord or longer contracts are increasingly seeing their rents rise.  These increases for renewing tenants tend to be lower and stretched over a longer period than for newly let homes, often meaning tenants still pay below market rate.  But even so, these hikes can still add up to hundreds of pounds a month.

“The large gap between market rates and what many tenants are paying is a big disincentive for them to move unless they have to.  Moving increasingly means getting less home for more money. While time will eventually close the gap between what sitting and new tenants are paying, it may take longer if rental growth on the open market starts picking up again.”

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.

  • George Dawes

    Make your mind up , one minute its doubling now its stabilising

    All clickbait codswallop , smh

    • A S
    • 21 May 2024 09:46 AM

    Must be a slow news day.

    Haven't the people that run this site worked out yet that they need a Generation Rent based article to get higher levels of engagement from the readership rather than these non-stories? Time to poke the GR bear!


    A S
    Hopefully they are too busy fixing the data protection leaks where James
    Turner is disclosing our personal detals.

  • icon

    The rents near me are going up, but gradually. The odd £20-£40 per property, but over time it adds up.


    Ready for Labour

  • icon

    Well it all depends doesn't it. Those landlords who haven't been putting their rents up in the last few years are now catching up, and if a property becomes vacant then it will be advertised on a much higher rent. Some landlords already at market rate won't be putting theirs up as much. So depends when it last came vacant. All new entrants will have to start at max rent to cover costs.


Please login to comment

MovePal MovePal MovePal
sign up