HomeLet says average UK rents reached £1,369 in July, up from £1,353 in June, while London pulled further ahead with annual growth of 6%. The latest index points to rental inflation picking up again after a softer June reading.
The monthly release shows rents outside Greater London also moved higher, rising to £1,170. Eleven of the 12 regions recorded a monthly increase, with only Northern Ireland posting a fall from June.
For landlords, the fresh shift matters because it suggests demand is still outrunning supply across much of the market, even after the Renters’ Rights Act changed how many investors are judging new lettings, re-lets and rent reviews.
London leads again as annual rental growth accelerates
HomeLet’s latest numbers show London rents reached £2,207 a month in July. That was 1.2% higher than June and 6% above the same month last year. Scotland recorded the sharpest monthly rise at 2.6%, while the East Midlands posted the second-strongest annual growth after London at 4.7%.
The national picture was firmer too. Average UK rents rose 1.2% in the month, and annual growth accelerated to 4.3%. Outside London the yearly increase was 3.4%, which shows the rise is not just a capital story even if London is still setting the pace.
This follows Residential Landlord’s London rents climb as supply falls 4% and demand holds strong, which tracked Rightmove’s record asking-rent data in mid-July. The latest HomeLet figures add another sign that landlords are still operating in a market where supply is thin enough to keep rents moving up, even when tenant budgets are stretched.
Landlords still need to separate pricing power from affordability risk
That does not mean every landlord can push harder without consequence. Residential Landlord’s Hamptons says new-let rent growth hit a 13-month high in June showed new-let growth had already been firming through June, but tenant affordability has not improved at the same speed. In weaker local markets, voids and arrears risk can still rise if landlords overread the headline trend.
The bigger point is that July’s data keeps pressure on the idea that the market is easing cleanly. HomeLet’s rental index says demand is still strong enough to support higher achieved rents across most regions. For investors, that helps income on paper, but it also leaves less room for payment shocks if households hit trouble later in the year.
Landlords looking at autumn strategy should keep an eye on local tenant churn, not just national rent averages. A market can still be short of stock overall while becoming more price-sensitive street by street.
Opinion
July’s figures are good news for income, but they are not a free pass to keep testing the ceiling. The landlords who hold margins best from here are likely to be the ones who price firmly but keep one eye on affordability strain before arrears do the checking for them.
