Rents on newly-let homes have increased by 25% across the UK since the start of Covid, costing the average tenant an extra £2,962 each year.
Hamptons reports that rents rose 11% year-on-year, with April marking the second strongest month for rental growth on record.
The average monthly rent on a newly let home outside London hit £1,002 in April, 7% up on this time last year, while in London the average monthly rent exceeded £2,200 for the first time, up 17%.
In April, the average inner London rent rose to £3,138, 24% higher than the same month last year.
Despite this, rental growth across London since Covid has lagged behind most of the country; the average rent in inner London has risen 21% since February 2020, while in outer London it’s up 22%. The South West, North West and North East have recorded the strongest growth since then, with rents up 31%.
Like London, Scotland also saw double-digit rental growth (12%) in April for homes where a new tenant moved in.
Aneisha Beveridge, head of research at Hamptons, says that with rents on the open market rising quickly, tenants will face the choice of staying put or moving to a smaller home in a more affordable area.
“While anyone choosing to sit tight tends to face smaller rental increases than those moving home, they are not immune,” she adds.
“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.”