The latest figure is down from 8.7% in the 12 months to January 2025.

Average rents increased by 8.3% to £1,381 in England, by 8.5% to £785 in Wales and by 5.8% to £998 in Scotland, in the 12 months to February 2025.

In Northern Ireland, average rents increased by 8.1% in the 12 months to December 2024.

In England, rents inflation was highest in London at 9.9% and lowest in Yorkshire and The Humber at 4.8%, in the 12 months to February 2025.

Foxtons managing director of lettings Gareth Atkins says: “The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years.”

“Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing.”

“At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing. With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.”

Meanwhile, Propertymark chief executive officer Nathan Emerson states: “With there being a decreased focus on the supply of new rental properties in the UK Government’s Renters’ Rights Bill, it sadly comes as little surprise that rents continue to increase.”

“However, there are reasons to believe that they have not increased at the rate they have done in previous years. For example, recent data has found that annual rent inflation for new lets is running at its lowest level for 3.5 years.”

“Propertymark recognises that the UK Government’s aim is to safeguard renters and give them greater security.”

“However, an unintended consequence of continued legislation placed on landlords is a real concern echoed across the industry as overly prohibitive regulations will likely contribute to a reduced supply of rental homes, an increase in rent prices, and make it harder for people to find affordable housing.”

Hampshire Trust Bank managing director of specialist mortgages and bridging Alex Upton adds: “Rising rents have become a reality for tenants, driven by a fundamental shortage of rental homes. However, there are signs of change.”

“Zoopla’s latest rental market report shows the number of renters competing for each available property has dropped to 12. It’s still high, but an improvement on recent years.”

“This easing in demand may be contributing to a slowdown in rental growth, with Zoopla reporting the lowest level of increases in over three years.”

“The elephant in the room is the Renters’ Rights Bill. While the legislation is designed to improve standards, which we fully support, there are concerns that it may reduce rental stock, at least in the short term. That could put upward pressure on rents again.”

“But change also brings opportunity. Professional landlords with a long-term mindset are already adapting, shifting their focus to properties that maximise rental yields.”

“Brokers and lenders will need to do the same to support these evolving strategies. If they do, the real winners will be tenants, benefiting from a broader selection of high-quality rental homes in the future.”