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Tenants Face £90 More for New Homes

  • Writer: Sarah Ruivivar
    Sarah Ruivivar
  • Sep 22
  • 1 min read
Image: Pixabay
Image: Pixabay

Tenants in the UK are feeling the pinch, with an average of £90 more per month when moving into a new property compared to renewing their current lease.


According to Hamptons, the cost of renewing a rental contract rose by 4.3% in the year to August. While this gap is smaller than the whopping £170 peak in October 2023, it's still a far cry from the pre-Covid days when the difference was a mere £10 to £20.


But wait, there's more! Renewed contracts need to climb another 5% to catch up with the growth in new let costs since August 2020. However, Hamptons predicts this gap will shrink as affordability pressures build, slowing rental growth on renewals.


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In August, the rental market saw an 8% increase in unlet homes compared to last year, with tenant demand dipping slightly by 4%. While rental stock has been trailing behind 2019 levels for years, the gap is closing. In August 2025, there were only 16% fewer homes on the market than in August 2019, down from 21% in July.


So, what's the takeaway? Keep an eye on those rental trends, as the market is ever-changing and full of surprises!


Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!

Access from your preferred podcast provider by clicking here



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