London Rent Inflation Stays Lowest In England Despite GBP2,302 Average

The UK's latest official rent release shows London still carrying the highest average monthly rent while recording the lowest annual rent inflation among English regions.

The ONS Split Is Important

ONS data for June 2026 put the average UK private rent at GBP1,388 and England at GBP1,446. London remained the most expensive region at GBP2,302, but its annual rent inflation was 2.2 percent, below every other English region.

The North East Has The Faster Growth

The North East recorded the highest annual rent inflation at 6.3 percent, from a much lower average rent base. Investors should therefore separate cash yield, rent growth and affordability rather than assuming London always has the strongest rental momentum.

House Price Growth Slowed

The same official release showed UK house price annual growth easing to 2.7 percent in May. That affects buyer psychology, especially where mortgage costs and rent levels are both high.

Buyer Checks

London buyers should review borough-level rents, service charges, lease terms, building safety costs and mortgage stress tests. Regional investors should compare rent growth with local wages and void risk.

Outlook

London remains expensive but not the fastest-growing rental market. The next opportunity may be in assets where high absolute rent is supported by tenant income, not merely by scarcity.

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