Average rents increased to £1,362 (9.3%) in England, £772 (8.0%) in Wales, and £980 (6.5%) in Scotland, in the 12 months to November 2024.

In Northern Ireland, average rents increased by 9.0% in the 12 months to September 2024.

In England, rents inflation was highest in London (11.6%) and lowest in Yorkshire and The Humber (5.7%), in the 12 months to November 2024.

Commenting on the latest ONS data, Propertymark chief executive Nathan Emerson said: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.

“It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next 10 years.”

He added: “It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep a objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand.”

Hampshire Trust Bank managing director Alex Upton commented: “The rental market remains under intense pressure, with demand significantly outpacing supply. Recent figures from Pegasus Insights show that eight in ten landlords reported strong tenant demand in Q3, and Propertymark’s data highlights an average of nine prospective tenants competing for each available property.”

She added: “Without a notable increase in supply – and that doesn’t appear imminent – this imbalance will continue driving rents higher. I fully expect to see new rental records set in 2025.”

Foxtons has also reported on how rental demand has specifically shaped the London market