HomeLet: UK new-tenancy rents hit £1,382 in August

HomeLet’s latest Rental Index puts the average UK rent agreed on a new tenancy at £1,382 a month in August 2026, up 0.9 percent from July and 4.1 percent over the year.

Outside London, the average new-tenancy rent reached £1,179, up £9 in a month and 3.4 percent annually. London remained the highest-cost market at £2,238, after a £31 monthly increase, while the South West recorded the fastest annual growth at 5.2 percent.

The figures are a useful reminder that the national average does not set an achievable rent for an individual property. They show a market still moving upwards, but with sharply different price points and growth rates across regions – and a need for landlords to test local evidence before setting a new asking rent.

London rents rise while regional results split

HomeLet said London’s August rent was 1.4 percent higher than in July and 5.1 percent above the same month last year. The South West average rose to £1,264, a 2.3 percent monthly increase and the strongest annual rise in the index.

At the other end of the English market, the North East remained the least expensive region at £734 a month, although that was 3.4 percent higher than a year earlier. Wales was the only area to record an annual fall, down 1 percent to £925, while the West Midlands fell 0.3 percent month on month to £1,062.

Julie Ford, founder of Lettings Advice Service, said it was too early to draw definitive conclusions about the causes of another rent increase, but that the Renters’ Rights Act could be affecting landlord behaviour and market dynamics. She added that the sector needed to consider whether continued growth was sustainable as renters’ budgets remained under strain.

Achievable rent matters more than a headline average

The previous HomeLet index covered by Landlord Knowledge put the July UK average at £1,369. August adds £13 to that figure, but the regional table makes clear that a landlord in Wales or the West Midlands cannot assume the same direction of travel as one in London or the South West.

HomeLet’s August Rental Index tracks newly agreed tenancies rather than every rent paid by existing tenants. That makes it a useful guide to the market facing a landlord who is re-letting, but it should be read alongside current local listings, recent agreed rents and the property’s condition.

Iain McKenzie, chief executive of The Guild of Property Professionals, said affordability pressures, changing legislation and compliance expectations were all shaping landlords’ decisions. He said professional agents could help owners judge achievable rents and manage risk in local markets.

This month’s mix also sits alongside Landlord Knowledge’s recent report on uneven post-Act rent growth across England. Both releases point to the same practical issue: national rent data can provide context, but it cannot replace a local appraisal and a lawful tenancy process.

What this means for landlords

If you are re-letting: use the index as a benchmark, then check comparable homes that have actually let in your area.
If you own in London or the South West: stronger annual growth does not remove the need to test tenant affordability at the asking rent.
Watch for: Wales and the West Midlands, where the August monthly figures moved down or stayed weaker than the national trend.
Bottom line: new-tenancy rents are rising nationally, but the price a landlord can achieve remains a local question.

Editor’s view
Rent indices are most useful when they stop landlords from copying a national number onto a local advert. August still shows upward pressure, but the regional gaps are large enough to reward careful pricing and punish a rent that ignores the evidence on a particular street.

Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 September 2026

Sources: HomeLet Rental Index, August 2026; Lettings Advice Service; The Guild of Property Professionals
Related reading: HomeLet: UK rents rise to £1,369 in July as London stays ahead