Average UK monthly private rents have risen by 3.7% in the 12 months to July, up from 3.3% in June.

Data from the Office for National Statistics reveals that average private rent reached £1,392 in July.

The largest increase was seen in Wales where average rents increased by 4.5% to £843, followed by England where they grew by 3.8% to £1,451 and in Scotland they went up by 1.7% to £1,016.

In Northern Ireland, average rents increased by 2.3% to £875 in the 12 months to May 2026.

In England, private rent annual inflation was highest in the North East at 6.3%, and lowest in the South East at 2.9%, in the 12 months to July 2026.

All figures are provisional estimates.

Propertymark chief executive Nathan Emerson says: “Although rental prices continue to increase, the overall rate of rental inflation has slowed over the past 12 months.”

“However, with an average of seven people registering their interest in each available property at many letting agency branches, there remains intense pressure on the supply of suitable rental homes.”

“Across all nations, there is a continued need for substantial long-term investment in housing to keep pace with real-world demand, particularly as the population continues to grow.”

“However, for rental stock levels to increase, many factors must work in harmony to help deliver sustainable new homes in the regions where they are needed and at the right time.”

Also commenting, Hampshire Trust Bank managing director of specialist mortgages and bridging finance Alex Upton adds: “Competition for good-quality rental property remains intense, which helps explain why rents continue to rise.”

“The latest Propertymark report found letting agents have an average of just 12 properties per branch, compared with 98 prospective tenants. That is a significant imbalance, and in many areas good rental properties simply do not stay available for long.”

“At the same time, the succession of legislative changes in recent years, culminating in the Renters’ Rights Act, has changed the way many landlords are thinking about their portfolios.”

“The landlords we work with are being much more strategic and moving beyond expansion for its own sake. Strong tenant demand does not automatically make every acquisition a good investment, and professional landlords are increasingly discerning about where they put their capital.”

“We’re seeing more focus on which properties genuinely strengthen a portfolio, where income is more resilient and where there is a clear case for further investment.”