This is according to the latest data from the ONS which also reveals that the annual growth rate was down from 8.1% in the 12 months to February 2025.

Average rents increased to £1,386 (7.8%) in England, £792 (8.9%) in Wales, and £1,001 (5.7%) in Scotland, in the year to end of March 2025.

In Northern Ireland, average rents increased to £838 (8.2%) in the 12 months to January 2025.

In England, private rents annual inflation was highest in the North East (9.4%) and lowest in Yorkshire and The Humber (4.6%), in the 12 months to March 2025.

Commenting on the latest data, Propertymark chief executive Nathan Emerson said: “The rental sector continues to see sizable challenges from a magnitude of different angles currently. We continue to see a considerable mismatch between supply and demand with an average of 10 people wishing to rent each property currently available across the UK.

“In addition, we are seeing vast legislative changes that will affect how and if some landlords are able to continue operating within the sector. Throughout the last twenty years renting a property has become enormously more popular with people, and it’s vital there is targeted support and investment in the sector to keep pace with ever intensifying demand.”

Hampshire Trust Bank managing director specialist mortgages & bridging Alex Upton agreed that the rental market remained under significant pressure, with demand continuing to outstrip supply.

“Letting agents are managing multiple applicants for every available property. While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise.

“At the same time, the Renters’ Rights Bill is adding uncertainty for landlords. Proposed changes such as the removal of Section 21 may prompt some smaller or more cautious landlords to exit the market altogether, further reducing already stretched rental stock.”

Upton added that the marketing was also witnessing a shift. “Professional landlords are reassessing their portfolios with a long-term view, targeting properties that deliver tenant appeal and resilient yields. Refurbishment is playing a bigger role, helping to reposition or upgrade underused assets and bring more quality homes back into circulation.”

Specifically related to the London market, March saw a 14% increase in new rental listings across the capital compared to February, according to the latest data from estate agent Foxtons.