Almost all UK regions recorded annual rental growth in April, according to data from estate agency Hamptons.
Despite facing challenges such as higher stamp duty and mortgage costs, many landlords continue to get a good return on investment thanks to long-term rental growth.
So, where in the UK are rents rising the fastest?
Fastest-growing rents for newly let properties
The average monthly rent for new lets in the North West increased by five per cent to £1,027 in April 2025, compared to the same month in 2024. This was the highest regional growth recorded.
Other areas with strong rental growth for new lets included:
+3.2%
East of England, £1,253
+2.9%
East Midlands, £988
+2.8%
West Midlands, £1,071
With rental growth for new lets surging in these regions, they’re likely to appeal to landlords who are looking to buy a new property this year.
High average rents combined with a lower average property price combine for a higher yield, which means a better return on investment for landlords.
Read more: Best buy-to-let areas in the UK for 2025
London market suffers from dip in growth
Despite growth in other parts of the country, average rents for new lets in London have struggled so far this year.
Hamptons’ data shows rents have been falling for the past five months, with year-on-year growth of -1.4 per cent in April. However, the average monthly rent for a new let in the capital remains high at £2,262.
In Inner London, the average rent has dropped by 3.8 per cent, while outer London recorded growth of just one per cent between April 2024 and April 2025.
| Region | New lets | Renewals | ||
| Average monthly rent | YoY increase % | Average monthly rent | YoY increase % | |
| Greater London | £2,262 | -1.4% | £2,141 | 0.5% |
| Inner London | £2,263 | -3.8% | £2,612 | -1.4% |
| Outer London | £1,996 | 1.0% | £1,795 | 2.6% |
| South | £1,341 | 2.5% | £1,227 | 4.7% |
| East of England | £1,253 | 3.2% | £1,195 | 5.1% |
| South East | £1,467 | 2.2% | £1,327 | 3.9% |
| South West | £1,237 | 2.4% | £937 | 5.6% |
| Midlands | £1,033 | 2.9% | £895 | 7.3% |
| East Midlands | £988 | 2.8% | £974 | 7.2% |
| West Midlands | £1,071 | 2.8% | £974 | 7.4% |
| North | £951 | 3.0% | £869 | 5.7% |
| North East | £825 | 1.2% | £767 | 9.7% |
| North West | £1,027 | 5.0% | £890 | 5.7% |
| Yorkshire & the Humber | £905 | 0.8% | £885 | 4.1% |
| Wales | £883 | 1.3% | £800 | 4.3% |
| Scotland | £1,005 | 1.1% | £892 | 5.6% |
| Great Britain | £1,360 | 1.2% | £1,257 | 3.7% |
| Great Britain (excl. London) | £1,129 | 2.6% | £1,030 | 5.4% |
Where are rents for renewed tenancies rising the fastest?
When looking at average rents for tenancy renewals, the North East recorded the highest growth at 9.7 per cent year-on-year (£767).
Other areas with impressive annual rental growth for renewals included:
+7.4%
West Midlands, £974
+7.2%
East Midlands, £974
+5.7%
North West, £890
All UK regions apart from Inner London (-1.4 per cent) recorded annual growth on renewed rents.
Across the whole of London, average renewal rents increased by just 0.5 per cent in April 2025, with just 23 per cent of landlords increasing rent (down from 37 per cent the previous April).
Average rents – what’s the national picture?
The typical rent for a new let in Great Britain reached £1,360 in April (£1,129 excluding London). This represents annual growth of 1.2 per cent.
For renewals, the average national rent is £1,257 (£1,030 excluding London) – up 3.7 per cent year-on-year. This is down from a high of 9.2 per cent recorded in October 2023.
Over the last five years, the average rent on a new let has increased 36 per cent, according to Hamptons, while renewals have grown by 28 per cent.
In cash terms, this means tenants renewing a contract pay £103 less a month than those signing a new contract.
For the last 20 months, average renewed rents have increased faster than those for newly let properties. This could be down to landlords trying to recoup increased costs such as income tax and stamp duty.
Rental growth in Scotland and Wales remains steady
Average rents for new lets in Scotland and Wales recorded annual growth of 1.1 per cent and 1.3 per cent respectively.
The average rent for a new let in Scotland was £1,005 and £883 in Wales during April 2025.
When looking at renewals, growth figures in Scotland and Wales were well above the national average at 5.6 per cent and 4.3 per cent respectively.
This puts the average renewal rent in Scotland at £892, and £800 in Wales.
Rising rents – what does this mean for landlords?
If average rents are rising in your area, the key takeaway is that this could improve your yield.
A higher yield means a better return on investment. However, increased costs are affecting returns for many landlords.
Areas with rising rents are likely to be popular with tenants. This means your tenants could be more inclined to stay in your property for longer. Or, if you have a new let, competition could be high and the amount of time it takes to rent out the property could be shorter.
If you’re looking to buy a rental property, it’s worth looking for areas with rising average rents and lower average property prices to maximise your returns.
More guides for landlords
- What is buy-to-let investment? A guide to buying and selling property
- Are buy-to-let mortgage rates rising or falling?
- UK house price predictions for next 5 years: a landlord’s guide
- Setting up a buy-to-let limited company – a guide for landlords
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