Average UK private rents increased by 8.6% in the 12 months to July 2024.

This is according to the latest Price Index of Private Rents (PIPR) from the Office of National Statistics (ONS) which reveals that average rents increased to £1,319 (8.6%) in England, £748 (7.9%) in Wales, and £965 (8.2%) in Scotland, in the year to July 2024.

In Northern Ireland, average rents increased by 10% in the year to May 2024.

In England, rents inflation was highest in London (9.7%) and lowest in the North East (6.1%), in the 12 months to July.

Nathan Emerson, CEO at Propertymark commented that the rental market continues to feel the harsh reality of ongoing pressures on housing demand, which are outstripping current supply.

“This has a real-world effect on rental prices for consumers and that consequence is prices tend to be pushed further upwards. It is crucial the mismatch between supply and demand is addressed as a priority to help ease a current ‘nine applications per available property’ trend that we are witnessing.”

He added: “It’s an unhealthy situation and one that can only be solved by ensuring long term investment in a diverse mix of sustainable housing to keep pace with growing demand.”

Moneybox head of personal finance Brian Byrnes said: “As a nation of aspiring homeowners, news that rental costs continue to rise is concerning. However, with a new government committed to supporting wealth generation across the country, perhaps there is a glimmer of hope for aspiring homeowners in the UK.”

He concluded: “Our industry must start to seriously consider the long-term effects of ever-increasing rental costs. We know how these are continuing to eat into renters’ disposable income and impact their ability to build a deposit for a future home.”