For the first time in history, the average monthly rent for a newly let property outside London has reached the milestone of £1,000 per calendar month (pcm). Hamptons’ latest data revealed the average rent outside London rose to £1,002 pcm in April, a 7.8% increase, or £72 pcm more than the same period last year.
This significant moment arrives less than three years after the average rent for the entirety of Great Britain, including London, last crossed the same threshold. Since Hamptons began their index in February 2013, average rent outside London has passed four £100 pcm milestones, with three of these occurring after the onset of Covid.
In contrast, London continued its strong rental growth with a 17.2% annual increase, leading to the average rent surpassing £2,200 pcm for the first time in April.
Across Great Britain, rents rose by 11.1% year on year, marking the second strongest month for rental growth on record. Since the Covid pandemic’s onset, rents have soared by 25%, leading to an additional annual cost of £2,962 for the average tenant.
“Back in February 2013 when our lettings index began, the average tenant who moved into a new home in regions outside of London paid £677 pcm, £325 pcm less than in April 2023,” said Aneisha Beveridge, Head of Research at Hamptons. “The £900 pcm mark was passed just 21 months ago in August 2021.”
London continues to lead the way in rental growth, with the average rent on a new let in Greater London reaching £2,210 pcm in April, a 17.2% increase from the same month the previous year. The average rent in Inner London climbed to £3,138 pcm, a 24.9% or £625 pcm increase from the previous year.
Rents in Outer London posted double-digit growth for the third consecutive month, rising 15.1% year on year in April. Despite these increases, rental growth across London since Covid has been slower compared to most other regions.
“Despite soaring rents since Covid, the average rent in the regions outside of London has passed the £1k pcm mark,” Beveridge added. “Affordability constraints will likely hit the brakes on rental growth at some point this year, however, it’s unlikely to slow considerably due to the number of landlords looking to pass on their rising costs.”
Last month, average rents reached new records in seven out of Great Britain’s 11 regions, with Wales, the South West, and the North East remaining slightly below their peak. Scotland also posted double-digit rental growth of 12.8% in April.
