£3,340 £4,586 +10.5%
MARKET OVERVIEW
RENTAL MARKET SHIFTS
With softening renter demand, rents edged down slightly over January, although they remain higher than a year ago. Against this backdrop, the Renters’ Rights Act adds an important policy dimension, with major changes taking effect from 1 May 2026.
RENTS EDGE DOWN
Average rents across the UK fell by 1.1% over the month in January to £1,302, marking a third consecutive monthly decline showing a typical seasonal slowdown. In annual growth terms though, rents are still 2.4% above January 2024 levels¹. Most regions recorded small monthly rental decreases, with only the North West and South East avoiding falls. Rental growth is decelerating across most of the UK, with demand for rented homes having fallen by a fifth over the last year, while the number of homes available for rent is 15% higher². Looking ahead, rents are still expected to grow this year and beyond, forecasts suggest an annual increase of 2-3% per year to 2030³. In the prime market, average rents have reached £4,586 up 10.5% year-on-year.
TOP RANKED CITIES FOR RENTAL DEMAND
Looking at how rental demand varies across cities, Manchester, Bristol and London rank as the UK’s strongest markets, where a range of factors support future rental demand4 . This ranking draws on economic performance, demographic change and housing-market conditions to compare rental demand prospects across the country’s 60 largest cities and towns. While several familiar names remain in the top ten, new entrants such as Aldershot, Newcastle and Norwich suggest demand is spreading beyond the usual high-profile centres. Cities with strong job growth and knowledge-based industries, such as Edinburgh, Bristol and York, perform well, while innovation hubs like London, Cambridge and Edinburgh also rank highly.
¹HomeLet, ² Hometrack, PriceHubble, Consensus Forecasts amongst agents (November 2025), 4 PriceHubble City Ranking Index (January 2026)
£1,850
£2,331 +4.3%
£23
£1,600
£1,978 +2.6%
£17
£1,600
£1,920 +3.6%
£18
£2,200
£2,917 +5.7%
£24
Source: Dataloft Rental Market Analytics by PriceHubble
£2,750
£3,735 +12.7%
£25
£1,500
£1,968 +13.6%
£19
£1,500
£1,824 +4%
£17
£1,550
£1,903 +10.6%
£15
£4,400
£6,312 +10.3%
£53
£2,270
£2,956 +8.9%
£23
£1, 366
£3, 340
£4, 586
£1, 402
£3, 360
£4, 450
£1, 317
£3, 300
£4, 768