The cost of renting a home in the UK has reached an unprecedented level, with the average monthly rent climbing to £1,353 in June 2026. This figure represents a 1% increase from May's average of £1,340 and is 3.4% higher than the £1,308 recorded a year earlier, according to the latest HomeLet Rental Index. The data underscores a persistent upward trend in the rental market, despite the pace of growth being more moderate than the double-digit surges observed in previous years.
Greater London continues to be the most expensive region, with average monthly rents hitting £2,181. This marks a 0.9% rise from the previous month and a significant 5.0% increase compared to June 2025, making the capital the strongest performer on an annual basis. When Greater London is excluded from the national figures, the average monthly rent across the rest of the UK stands at £1,157, reflecting a 1% increase from May and annual growth of 2.7%.
The regional picture reveals widespread increases, with ten out of the UK's twelve regions experiencing month-on-month rises. Scotland recorded the most substantial monthly jump, with average rents increasing by 3.6%. Following closely were Wales, which saw a 1.9% rise, and the North East, with a 1.4% increase. Annually, while London led with 5% growth, the West Midlands and North East both registered notable increases of 3.9%, and Scotland's average rents were 3.6% higher than a year ago.
This sustained upward pressure on rents comes amidst a complex economic backdrop, including continued high mortgage rates that impact landlords' costs and influence the rental market. While house price growth has shown signs of moderation in some areas, the rental sector appears to be less affected by cooling trends. For first-time buyers, the escalating rental costs can make saving for a deposit even more challenging, particularly as stamp duty thresholds and schemes like Help to Buy have influenced the sales market.
The persistent demand for quality rental accommodation, as highlighted by Mike Dawson, head of sales at HomeLet and Let Alliance, is a key driver behind these increases. Landlords and letting agents are navigating a market where tenant demand remains robust, but they also face the challenge of adapting to evolving regulations. The data suggests that despite broader economic uncertainties, the rental market's resilience continues to push prices upwards across most of the country.