The annual growth rate slowed slightly from 5.7% recorded in the year to August, according to the latest provisional data from the Office for National Statistics.

Across the nations, average monthly rents climbed to £1,410 in England, up 5.5% year-on-year, £815 in Wales, up 7.1%, and £1,004 in Scotland, up 3.4%.

In Northern Ireland, where the schedule for reporting data is different, average rents increased by 7.1% to £865 in the 12 months to July 2025.

Within England, the North East saw the steepest annual rise at 9.1%, while Yorkshire and The Humber recorded the smallest increase at 3.8%.

Propertymark chief executive Nathan Emerson says: “It is clear that there are challenges which need addressing, in terms of simply not having enough supply of rental properties available to meet current demand levels.

“We are about to witness some of the biggest evolutions in over thirty years within the rental sector, with the Renters’ Rights Bill across England and the Housing (Scotland) Bill.

“Both will make fundamental changes to how landlords operate and are aimed at strengthening consumer rights concerning standards.

“Across the forthcoming decade, it is essential that all eyes are turned to encouraging long-term investment in the rental sector to keep up with increased demand and population growth.”

North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “The nervousness in the sales market is apparent in lettings too but it is not just the Budget and the potential impact of financial changes but the imminent arrival of the Renters’ Rights Bill which is prompting more than a stir.

“Tenants are bearing the brunt as landlords are selling up whereas those remaining are becoming more strict about referencing and guarantors in anticipation of finding it more difficult to remove problematic tenants when the new set of rules is in place.

“On the other hand, tenants are still concerned about affordability, which is evidenced in the higher-than-average rent increases noticed in areas away from the more expensive London and the South East.”