Brighton recorded the highest rental price increase in the UK last year, with rents surging 15 percent as the South Coast emerged as the country’s strongest rental growth region. The findings come from Lomond’s Quarterly Insights report, which shows the national average rent rose to £1,602 per month – up 4.9 percent on 2024.
South Coast outperforms all regions
The South Coast of England delivered the strongest rental growth nationwide, with average rents rising 10.5 percent to £1,774 per month. Brighton led the charge, benefiting from its position as a commuter hub just one hour from London by train. Southampton, Portsmouth and Worthing also saw double-digit increases as demand for two- and three-bedroom homes continued to outstrip supply.
London recorded a more modest 1.5 percent increase, with average rents reaching £2,395 per month – still 49 percent higher than the UK average. Despite regulatory changes following the Renters Rights Act, both suburban and inner-city London markets remained stable.
This contrasts with Zoopla data released earlier today showing national rent growth at a four-year low of 1.9 percent. The difference reflects methodology – Lomond’s figures capture achieved rents across its agency network, while Zoopla tracks asking rents on new listings.
Regional breakdown reveals north-south divide
The Midlands saw rents grow 5 percent to £1,168 per month, while the North West recorded a 4 percent rise to £1,243. Furnished city-centre homes proved most popular with tenants in both regions.
Scotland bucked the trend with a 1 percent dip in average rents to £1,348 per month. However, the region saw a 38 percent surge in new landlord instructions, suggesting rising confidence despite softer headline figures.
Buy-to-let mortgage activity stabilised throughout 2025 after sharp falls from 2023 to 2024. BTL mortgages now comprise around 8-9 percent of all new lending, indicating landlords remain engaged but cautious as they adjust to policy changes.
Ed Phillips, group chief executive of Lomond, said: “The UK’s rental sector showed real resilience in the final quarter of 2025. With the market framework now in place, the challenge shifts from anticipation to execution in both lettings and sales.”
Phillips added: “While regional trends vary, demand remains strong, and landlords continue to invest strategically. With buy-to-let lending stabilising and rents rising at a manageable pace, the market enters 2026 on solid footing.”
The findings align with recent analysis showing tenant caution on affordability, even as headline rents continue rising in high-demand areas.
What this means for landlords
- If you’re in Brighton or the South Coast: Strong demand and double-digit growth make this a prime area for rental income – but expect increased competition from other landlords attracted by the yields.
- If you’re in Scotland: The 38 percent jump in landlord instructions signals growing confidence despite softer rents – new supply may moderate future growth.
- London landlords: Modest 1.5 percent growth suggests the capital’s rental market is stabilising after years of volatility – focus on retention over aggressive rent increases.
- Watch for: BTL lending at 8-9 percent of new mortgages suggests cautious optimism – conditions may improve if base rate cuts materialise.
- Bottom line: Regional variation is now the defining feature of UK rents. Landlords should focus on local demand drivers rather than national averages.
Editor’s view
Brighton’s 15 percent surge is eye-catching, but the real story is the stabilisation of buy-to-let lending. After two years of sharp declines, landlords are cautiously returning to the market. The regional divergence – South Coast booming while Scotland softens – reinforces that property investment is increasingly a local game. National headlines matter less than knowing your patch.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 March 2026
Sources: Lomond Quarterly Insights Winter 2025/26
Related reading: Rent growth slows to four-year low as half of councils breach £1,000 mark
