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Renting a home: is it cheaper to renew or move at the end of your contract?
New research shows renters in inner London could save £100 a month by moving home
If your tenancy agreement is coming up for renewal, it's worth considering your options before signing on the dotted line.
New research shows renewal prices are continuing to rise but rents on new lets are falling, meaning staying put might not necessarily be the cheapest option.
Of course, there's more to moving home than the cost of rent alone. Read on to find out what's happening to prices where you are, and for advice on the additional costs of moving home.
Renters in inner London could save £100 a month
New data from the estate agency Hamptons shows the average rent for a new let in inner London is £100 a month cheaper than a renewal.
Renewal costs have increased by 4% year-on-year, while rents on new lets have fallen by 5%.
Across Great Britain as a whole, renewing is still cheaper on average, but the gap is narrowing.
For example, in Yorkshire and the Humber, the difference in cost between a new let and a renewal fell from £75 a month in January to £56 a month in February.
If your tenancy agreement is due for renewal soon, it's worth considering your options, as the likelihood of finding a better deal elsewhere is increasing.
Aneisha Beveridge of Hamptons says: 'Tenants moving into a new home have seen rental price growth grind to a halt, with prices rising at the slowest rate since September 2020.
'This means some tenants who moved relatively recently may be able to find themselves a better deal by moving again.’
How rents vary across Great Britain
The table below highlights the difference in the average monthly rent between new lets and renewals across Great Britain.
It also serves as a reminder of the significant regional variations in the cost of rent. For example, the average monthly rent for a new let in inner London is more than three times higher than in Wales.
The North East had the cheapest costs for both new lets and renewals in February, with the average renewal costing £749 per month.
| Greater London | £2,256 | -2.8% | £2,165 | 5.9% |
| Inner London | £2,647 | -5.1% | £2,743 | 4.6% |
| Outer London | £1,969 | -0.6% | £1,840 | 7.4% |
| East of England | £1,254 | 4.6% | £1,184 | 4.4% |
| South East | £1,462 | 1.9% | £1,302 | 5.1% |
| South West | £1,249 | 3.3% | £1,113 | 6.8% |
| East Midlands | £976 | 2.4% | £888 | 7.7% |
Source: Hamptons Letting Index. Figures from February 2025
The additional cost of moving
Before deciding to move at the end of your tenancy, it's important to factor in the additional costs involved.
Deposits and fees
First of all, you'll need to pay a deposit on the new property, potentially before you get your current deposit back from your landlord.
If your landlord makes deductions, for example for breakages or professional cleaning, this could put a dent in the amount you'll receive. You can contest deductions via your tenancy deposit scheme.
In England, deposits are capped at five weeks' rent (six weeks' if the annual rent is above £50,000). Rules differ in Scotland, Wales and Northern Ireland.
Landlords and letting agents can no longer charge fees for reference checks, credit checks and drawing up contracts.
Removals
The cost of moving your belongings can also be significant, depending on the size of your home and the level of packing service you choose.
To get a rough idea of the costs, we collected quotes for a move between two properties in the same town, and two properties within the same London borough.
We found that moving to a two-bedroom house with a full packing service would set you back over £1,000.
Alternatively, for smaller properties (up to two bedrooms), you may be able to cut costs by hiring a van and moving your belongings yourself.
For instance, Zipcar van rentals start from £10 per hour or £100 per day, offering a more budget-friendly alternative to professional movers.
The table gives an indication of the price of moving to a one-bedroom house all the way up to a three-bedroom house, with a basic or full packing service.
| Removals company basic package | £240 | £240 | £450 | £440 | £740 | £720 |
| Removals company with packing service | £560 | £720 | £1,100 | £1,100 | £1,630 | £1,620 |
Source: AnyVan. Figures are based on a move between the same sized property.
New protections for renters in 2025
Tenants in England are set to be given greater protections via the Renters' Rights Bill, which should come into force later this year.
Currently, the Bill is awaiting a committee stage date in the House of Lords. During this stage, each clause will be scrutinised, and amendments may be proposed.
Under the Bill, 'no fault' evictions will be banned, rent increases will be limited to on a year, and landlords won't be able to hold bidding wars on their properties.
To find out more, see our full story on what is included in the Renters' Rights Bill.
