The rise in rents has ‘bottomed out’ with the lowest increases since 2021, new industry data shows.

The average tenant moving into a new property last month saw the rent they pay rise by 1.8% compared to 12 months ago, the slowest rate of growth since October 2020, according to Hamptons.

Growth slowed

This is the 18th consecutive month that rental growth has slowed, leaving the average tenant moving home paying £1,372 a month.

However, tenants renewing a contract continued to see rents rise much faster, at 6%, than others moving into new properties.

With the exception of Scotland, where there are currently caps on rent hikes within a tenancy, every region saw renewal rents rise more quickly.

Largest drop

Meanwhile, London has seen a 25% fall in homes available to rent since last year, the largest drop in the country.

January also marked the first time landlord purchases fell below double digits, with just 9.6% of purchases, the lowest figure since at least 2009 when Hamptons’ records began.

London saw the most significant drop, with just 7% of purchases last month being made by a landlord.

The pace of rental growth nationally has likely bottomed out.”

Aneisha Beveridge, Head of Research at Hamptons (main picture) says: “The pace of rental growth nationally has likely bottomed out.

“There are some signs that growth outside London is slowly picking up again, but we’re unlikely to see it run at the same rate as it has over the last few years,” she says.

“New purchases by landlords have been depressed by increases in Stamp Duty rates towards the end of last year and the prospect of tighter regulation in the form of the Renters’ Rights Bill.”

Hamptons lettings index now sources its data from across the whole Connells Group.

Rents down, but set to rocket this year, proptech firm warns