Rents pass GBP 1,400 outside London for the first time. What a 5.34% buy-to-let rate does to the cash flow

Average advertised rents outside London have passed GBP 1,400 a month for the first time, reaching a record GBP 1,418, according to Rightmove figures reported on 15 October 2026.

What Rightmove's latest figures show

Rents outside London rose 1.5% on the quarter and 2.4% on a year earlier, Rightmove's data shows (as reported by Property118 and Property Investor Today, 15 October 2026).

London set its own record of GBP 2,825 a month, up 3.2% on the year. The number of London homes to let is 9% lower than a year ago, while renter demand there is up 6%.

The landlord side is quieter. Homes coming to the rental market after first being listed for sale fell from 17% to 15%, which Rightmove reads as less new landlord investment.

And borrowing has got dearer. Rightmove puts the average two-year fixed buy-to-let rate at around 5.34%, against 4.16% before the war in Iran began. Bank Rate is 3.75%, with the Bank of England's next decision on 5 November.

What 5.34% does to a typical let outside London

The Buy-to-Let Yield calculator, free in the Stresst app, takes the price, deposit, rent, mortgage rate and monthly running costs. It shows the gross and net yield, rent cover (rent as a share of the mortgage payment) and the monthly net cash flow, all in pounds sterling.

Take an illustrative GBP 250,000 home let at the Rightmove average of GBP 1,418 a month, with a 25% deposit (GBP 62,500), an interest-only loan of GBP 187,500, a 10% letting agent fee, GBP 75 a month for maintenance and GBP 35 for insurance.

At 4.16% the calculator shows:

• Mortgage interest of GBP 650 a month
• Rent cover of 218%
• Monthly net cash flow of GBP 516

At 5.34%:

• Mortgage interest of GBP 834 a month
• Rent cover of 170%
• Monthly net cash flow of GBP 332

That's GBP 184 a month less, or about GBP 2,200 a year. The gross yield stays at 6.81% and the net yield at 5.60%, because neither counts the mortgage. The cash flow does.

Why London feels it more

London rents are higher, but so are prices, so the margin is thinner.

Put an illustrative GBP 650,000 London flat into the same calculator at GBP 2,825 a month, with 25% down (a GBP 487,500 interest-only loan), the same 10% agent fee, GBP 75 maintenance, GBP 35 insurance and a GBP 200 monthly service charge. The gross yield is 5.22%.

At 4.16% it shows rent cover of 167% and a monthly net cash flow of GBP 543. At 5.34% rent cover falls to 130% and the cash flow to GBP 63.

At 5.50% it turns negative, at minus GBP 2 a month.

These figures are before tax. For a landlord who holds property personally, the Ltd vs Personal Name - Section 24 calculator shows how mortgage interest relief is restricted and what that does to the tax bill. For your own tax position, speak to a qualified UK tax adviser.

If a fix is ending, the Remortgage Calculator compares the current deal with a new one after arrangement fees and any early repayment charge, and shows the month the costs could be covered.

Run your own numbers in Stresst

Every worked figure in this article came out of the Stresst app. Put in your own price, rent, rate and running costs and you'll see your rent cover and cash flow in a couple of minutes.

Buy-to-Let Yield and the Remortgage Calculator are free, as are Mortgage Payment, Total Purchase Costs, Overpayment and the Stamp Duty Calculator. Ltd vs Personal Name - Section 24 is Premium, alongside UK Affordability and the Rate Break-Even Analyser. Premium also adds PDF export on every calculator, and it comes with a 7-day free trial.

The Bank of England decides on rates on 5 November, so download it now and see what a move either way would do to your let before then. On iPhone, Stresst is in beta through Apple's TestFlight app.

Download Stresst free on Google Play

Join the Stresst iPhone beta on TestFlight

Know your numbers before you commit.

Sources

• Property Investor Today, "Average rents exceed £1,400 for first time" (Rightmove data), 15 October 2026. https://www.propertyinvestortoday.co.uk/breaking-news/2026/10/average-rents-exceed-1400-for-first-time/
• Property118, "Advertised rents break £1,400 barrier - Rightmove", 15 October 2026. https://www.property118.com/advertised-rents-break-1400-barrier-rightmove/
• Letting Agent Today, "Typical London rents hit eye-watering record high" (Rightmove data), 15 October 2026. https://lettingagenttoday.co.uk/breaking-news/2026/10/typical-london-rents-hit-eye-watering-record-high
• Bank of England, "Interest rates and Bank Rate", accessed 15 October 2026. https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate