In the 12 months to March 2025, the cost of a newly agreed tenancy in Great Britain rose by 1.5% to £1,356 per calendar month, according to lettings agency Hamptons.  

This marks the third consecutive month when annual rental growth has been running below 2% and the fifth consecutive month when rental growth across the nation has been below general inflation.

Meanwhile, the average cost of renewing a tenancy grew by 4.2% nationally in the 12 months to March, bringing the average cost to £1,250 pcm, £106 a month less than a tenant moving into a new home.  

This means the rate of increase for renewed tenancies has been higher than that of new lets in every month since September 2023.

London continues to be a drag on rental growth, with rents down 1.7% on the same time last year. This puts the average cost of a newly let home in the capital at £2,255 pcm, the lowest level in almost two years.  

Slowing rental growth in the capital has been driven by falls in Inner London, where prices fell by 4.4% year-on-year.  Meanwhile, Outer London Rents grew by 1.2% (table 3).

The figure from Hamptons appears to be far lower than the data produced by the government’s Office for National Statistics.

The ONS says average UK monthly private rents increased by 7.7%, to £1,332, in the 12 months to March.

This annual growth rate is down from 8.1% in the 12 months to February this year.

Average rents increased to £1,386 (7.8%) in England, £792 (8.9%) in Wales, and £1,001 (5.7%) in Scotland, in the 12 months to March 2025.

In England, private rents annual inflation was highest in the North East (9.4%) and lowest in Yorkshire and The Humber (4.6%), in the 12 months to March 2025. In Northern Ireland, average rents increased to £838 (8.2%) in the 12 months to January 2025.