Average rents for tenants of privately-let homes increased by 8.7% in the year to October to reach £1,307 a month, the latest official figures show.
The increase amounts to an extra £105 per month for tenants across Britain, compared to a year ago, according to the Office for National Statistics’ provisional data.
October’s annual rate of increase was up from 8.4% in the year to September, but below the record-high of 9.2% in March.
In England, average rents were up by 8.8% to £1,348, compared to a 7.9% rise to £766 in Wales and a 6.6% increase to £976 in Scotland.
In Northern Ireland, where the reporting periods are different, average rents increased by 9% in the year to August.
London had the steepest rent inflation within England, up by 10.4%, and the highest average rent at £2,172 per month.
Within England, the North East had the lowest average rent at £694 and Yorkshire and the Humber had the slowest annual growth at 5.9%.
Hargreaves Lansdown head of personal finance Sarah Coles says: “Renters are stuck in an endless cycle of rising costs.
“It’s forcing more to consider living somewhere smaller, in a worse area, or further from work, in order to make ends meet.
“Meanwhile others are considering moving back into shared accommodation.
“The immediate future looks tough enough, as rents continue to spiral, but what’s worse is that there’s no clear signal that this is ever going to end.
“Landlords are still leaving the market, and the Budget made things even worse, with a higher stamp duty surcharge loaded on top of frozen income tax thresholds, stricter legislation and higher mortgage rates.
“The RICS residential market survey for October showed the most negative figure for new rental properties coming to market since the end of 2021.”
North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “Headline rents are still rising, partly due to continuing demand as well as landlord sales ahead of the Budget.
“However, the capital gains tax rises anticipated by many did not materialise which could persuade some landlords to stay invested and maintain a better balance in the market.
“In our offices, we have encountered considerable resistance among tenants to pay higher rents bearing in mind significant increases over the past year or so.
“As a result, in some cases landlords have had to adjust their expectations, although the overall trend continues upwards.”
