Average UK monthly private rents increased by 5.7%, to £1,348, in the 12 months to August 2025 this annual growth rate is down from 5.9% in the 12 months to July 2025. This is according to the latest data from the Office for National Statistics

Breaking down the numbers for countries, average rents increased to £1,403 (5.8%) in England, £811 (7.8%) in Wales, and £1002 (3.5%) in Scotland, in the 12 months to August 2025.

In Northern Ireland, average rents increased to £860 (7.2%), in the 12 months to June 2025.

In England, private rents annual inflation was highest in the North East (9.2%) and lowest in Yorkshire and The Humber (3.4%), in the 12 months to August 2025.

Commenting on the latest numbers Paragon Bank commercial director of mortgages, Russell Anderson said: “Historically, rent inflation has broadly correlated with wage inflation. The mismatch between the supply of and demand for privately rented homes in recent years has seen rents outpace wages, placing financial pressure on tenants.”

“Positively, buy-to-let mortgages rates have lowered more recently, which should help improve affordability and, ultimately, supply. While the cost of borrowing is a key determinant of buy-to-let investment, the regulatory environment is also an important consideration for landlords. It is therefore vital that their investments are protected with regulation that balances their rights with those of renters.”

Hampshire Trust Bank managing director specialist mortgages & bridging finance Alex Upton said: “Balancing the rental market must be a top priority for Steve Reed as he steps into the role of Housing Secretary.

The latest Propertymark data shows tenant demand rising sharply, far outpacing any increase in available rental stock. That imbalance is keeping rents under pressure, and until we see meaningful progress on supply, any short-term easing is likely to be temporary.”

Generation Rent chief executive Ben Twomey said: “Homes are the foundations of our lives, but rents continue to rise faster than our wages, swallowing more and more of our income. High rents push people into homelessness and trap them in temporary accommodation, they pull children into poverty and prevent people from saving for the future.”

He added: “We rightly have caps on our energy and water bills, but the same protections don’t exist to stop landlords from pricing us out of our homes. The government can and must act through devolving powers to Mayors to limit rent increases in their areas.”