Average rents on newly agreed UK tenancies rose to £1,369 in July, up 1.2 percent on the month and 4.3 percent year on year, as London stayed above £2,200 and most regions continued to edge higher.
The latest HomeLet Rental Index shows the July increase was broad rather than concentrated in one market. Excluding London, the UK average still climbed to £1,170, up 1.1 percent in a month and 3.4 percent from a year earlier. Northern Ireland was the only reported region to post a monthly fall.
For landlords, the data points to a market where rental growth is still alive, but is now moving in smaller regional steps rather than through another headline surge. That creates room for selective pricing, but less room for lazy pricing.
London still leads but regional growth is doing more of the work
HomeLet’s figures put average London rent at £2,207 in July, up 1.2 percent month on month and 6.0 percent year on year. Outside the capital, the South East rose to £1,475, Scotland to £1,059 and the North West to £1,110.
The North East remained the cheapest English region at £729, though even there rents were up 1.2 percent on the month and 4.0 percent annually. Wales was flatter at £934, up just 0.1 percent from July 2025, while Northern Ireland slipped 0.5 percent to £964.
This follows Landlord Knowledge’s July 1 report on HomeLet’s previous rental index, when the UK average stood at £1,353. The latest release suggests rent growth is still moving upward, but with a more measured pattern than the sharper jumps landlords saw earlier in the cycle.
Rising rents do not mean unlimited pricing power
The current picture is still one of upward pressure, but landlords should read it alongside other signs of a slightly more selective tenant market. Landlord Knowledge reported this week that Rightmove has seen rental enquiries ease to nine per listing in the first half, even while demand remained high by historic standards.
That matters because it suggests landlords can still achieve higher rents in many areas, but may need to justify asking prices more carefully on property quality, presentation and local competition. A rising national average does not guarantee the next uplift on every re-let.
According to the latest HomeLet Rental Index, actual achieved rents – not advertised asking prices – continued to rise across most of the UK in July. That makes the dataset particularly useful for landlords trying to judge where tenancies are actually landing rather than where portals initially pitch them.
What landlords should watch from here
One notable point in the July release is that growth was steady across a wide range of regions, but not dramatic. In practical terms, that can mean fewer easy gains from automatic annual uplifts and a greater need to benchmark each re-let against genuine local evidence.
For portfolio landlords, the split between London and the rest of the country also remains important. The capital still leads on headline rent levels, but many regional markets continue to offer a better balance between income growth, entry price and tenant depth.
What this means for landlords
- If you’re re-letting this quarter: use achieved-rent evidence, not just portal asking prices, when setting a new rent.
- Watch for: local markets where enquiry levels have cooled even though national rent growth remains positive.
- If you’re comparing regions: London still leads on price, but regional markets may offer a stronger balance of yield and tenant demand.
- Bottom line: July’s rent rise supports income, but pricing discipline matters more than it did during the fastest part of the rental squeeze.
Editor’s view
July’s HomeLet data is good news for income, but it is not a blank cheque. Landlords still have pricing power, just not the kind that lets weaker stock drift upward without resistance.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 04 August 2026
Sources: HomeLet Rental Index
Related reading: HomeLet: London rents rise 5% as UK average hits £1,353
