UK rents climbed to another record high in August, with tenants now spending almost a third of their income on housing costs, according to the latest HomeLet Rental Index.
The average monthly rent increased to £1,382, up 0.9% from £1,369 in July. That represents annual growth of 4.1%, with the average standing at £1,328 a year earlier.
Excluding Greater London, average rents reached £1,179. That was 0.8% higher month-on-month and 3.4% above August 2025.
Most regions recorded further increases during August. Ten of the 12 markets tracked by HomeLet posted monthly growth.
London rents rise above £2,200
Greater London remains the UK’s most expensive rental market.
The average rent reached £2,238 in August, rising 1.4% in a month and 5.1% year-on-year.
The South West recorded the strongest annual increase, at 5.2%. London followed at 5.1%, while Northern Ireland recorded growth of 4.9%.
Northern Ireland saw the largest monthly rise at 2.4%. The South West was close behind at 2.3%.
Wales was the only region to record both monthly and annual falls. Average rents dropped 1% on both measures to £925.
Tenants spend almost a third of income on rent
The latest figures also point to growing affordability pressures.
HomeLet’s data shows tenants are now spending an average 32% of their income on rent. In London, the proportion rises to 39.8%.
Meanwhile, landlords are facing their own financial pressures when tenancies break down.
Legal for Lettings’ Quarterly CourtWatch for Q2 2026 puts the average rent loss per possession case at £6,411. It also recorded an average court delay of 4.85 months across the 63 courts it tracks.
Julie Ford CCPM, founder of Lettings Advice Service, said: “While it is too early to draw definitive conclusions, it is possible that another consecutive rent increase reflects the impact of the Renters’ Rights Act on landlord behaviour and market dynamics.
“With renters already allocating 32% of their income to housing costs, the sector must consider whether continued rent growth is sustainable in an environment where wages are not rising at the same pace and the cost of living continues to squeeze household budgets.”
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “The rental market is becoming increasingly complex for landlords, with affordability pressures, changing legislation and greater expectations around compliance all influencing the decisions they need to make.
“In this environment, the value of a knowledgeable, professional independent agent has never been greater. Our members are embedded in their local markets and are ideally placed to help landlords understand achievable rents, manage risk and navigate their changing responsibilities while building sustainable tenancies.”
