Average private rents across the UK increased by 3.8% in the year to September to £1,406 a month, according to the Office for National Statistics.

The annual growth rate was unchanged from August, with tenants paying an average £52 more a month than a year earlier.

The figures come as separate ONS data showed average UK house prices rose by 0.9% in the year to August to £273,000.

In England, average rents rose by 4% year on year, or £56, to £1,466 a month. Wales recorded slightly stronger growth of 4.1%, taking the average rent to £848.

However, this was down from annual growth of 4.3% in August and well below the recent peak of 8.9% recorded in March 2025.

Average rents in Scotland increased by just 0.7% to £1,011, compared with annual growth of 1.1% in August.

This was the lowest annual increase recorded in Scotland since the current rental series began in January 2016.

Among English regions, the North West recorded the strongest rental growth, with average rents rising by 5.7% in the year to September.

London and the South East had the lowest annual increases, both at 3.5%.

However, London remained by far the most expensive English region, with an average monthly rent of £2,338, while the North East was the cheapest at £790.

Rental growth in the South East accelerated from 3% in August to 3.5% in September, while the rate in London was unchanged.

In Northern Ireland, where the latest figures run to July, average advertised rents for new lets increased by 1.7% year on year to £879 a month.

Northern Ireland rental growth has slowed substantially from its recent peak of 9.9% in April 2024.

Hampshire Trust Bank managing director of specialist mortgages and bridging finance Alex Upton says: “Continued rental growth highlights the pressure that remains on the private rented sector, even as the market becomes more balanced in some areas.

“There is no shortage of demand for good-quality rental accommodation, but that alone is no longer enough to encourage landlords to invest.

“Higher borrowing and operating costs have changed the calculations, and experienced investors are looking much more carefully at where they commit capital.

“The challenge is creating the conditions in which landlords have the confidence and financial flexibility to continue investing.

“Without that investment, it will be difficult to make meaningful progress on rental supply.”