There has been no increase in the average price of rents in Great Britain, excluding London, for the first three months of 2026, according to new data from property website Rightmove. This is the first time since 2017 that average rents outside of the capital for the first three months of the year have not been higher than average rents at the end of the previous year.
In this article, we will dig into the data and explore whether or not buying a home is still better than renting.
Why have rents stopped going up?
The average advertised price for private rental properties outside of London remained at £1,370 per month for the first three months of 2026. In the capital, the average advertised rent rose by just 0.7% to £2,736 per month, remaining below the peak average reached in the summer of last year.
Property data insights and analytics company TwentyCi found that rent now consumes a record 45.5% of median disposable income. This suggests that some tenants may have found that compounding rental increases over several years and the rising cost of living have left them at the extreme edge of affordability, with the market then matching what renters can actually afford to spend each month.
Lower demand will also be a key factor, with Rightmove reporting that the advertised price of around 26% of rental listings were being cut, the highest rate of rent reduction since the site began recording this metric in 2012. This suggests a combination of lower demand on the rental sector and less competition, though there are suggestions from some in the industry that Middle East residents moving back to the UK could push demand back up in certain sectors.
While the Rightmove data only applies to the rent advertised, not what tenants actually end up paying, it is possible the Renters' Rights Act may also be having an effect on living costs. Though it does not come into force until 1st May 2026, bidding wars on rental properties will be banned under the legislation, removing a lucrative method for landlords and property agents to use demand to significantly increase the final price from the advertised rent. It makes sense that prospective tenants, in the knowledge that the practice will be shortly outlawed, feel less pressure to engage.
There had been fears that landlords could seek to evict tenants before 1st May, with the Renters' Rights Act removing a landlord's right to evict tenants without justification through section 21 of the Housing Act, known as a 'no fault' eviction. Rightmove, however, has said the numbers do not back this up, with "no surge in newly listed homes for rent ahead of 1st May."
Will rents stay stagnant, or even start to fall?
This data comes with the caveat that the increased borrowing costs for landlords, triggered by the war in Iran, will almost certainly be passed on to tenants. While the mortgage market remains unstable, an increase to the Bank of England base rate has been priced in, meaning landlords with mortgages will likely face higher costs. The Renters' Rights Act will make it harder for landlords to hike rent for existing tenants, but any increase to the expense of renting out a property will likely be reflected in new listings over time.
Rightmove’s Colleen Babcock said: "It’s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the market at a later stage."
This could be tempered by higher supply driving up competition among landlords. According to Rightmove, rental supply was at its highest level for this time of year since 2021, with 3% more homes available now than at the same time in 2025.
Does this mean it is cheaper to rent than to buy?
TwentyCi, a property data insights and analytics company, reported that average homeowners save £493 per month compared to tenants, widening to nearly £1,000 per month in London.
This may seem surprising in one sense, as rising interest rates and property prices have made owning a home much more expensive than it was even a few years ago. Moreover, lenders have moved to make bigger mortgages more accessible to a higher number of prospective homeowners through higher income multiples. Major banks are offering borrowers mortgages six-times their incomes and borrowing more money will obviously make your mortgage costs more expensive. However, it also serves to keep the housing market moving, with a 5.1% increase year-on-year in homes coming to the market.
So while rents may be stagnating, and the cost of borrowing and buying a home rising, the traditional view that getting on the property ladder is the best choice still stands up to scrutiny. Ultimately, this is because most tenants are paying their landlord's mortgage costs, plus an extra margin for costs, tax and profit, so any extra increase to the cost of owning a home will eventually hike the cost of renting.
If you are unsure about whether you can afford to buy a home or how much you could borrow, it is a good idea to consult a whole-of-market mortgage broker, such as online broker Habito*. You will be able to get advice on how high to set your home-buying budget and which lenders are more likely to offer a more generous mortgage.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito
MTTM AI (beta) 
