Average UK house prices edged 0.2% higher to £291,000 in the year to August, but private rents jumped 5.7% in the 12 months to September, data from the Office for National Statistics shows.
London saw the biggest change in private rents over the last year, up 6.2%, the highest since records began in 2006.
Private rents lifted by 5.6% in England, by 6.9% in Wales and 6% in Scotland over the last year.
For house prices, the body says the latest average figure is £9,000 above the recent low point in March, but “was little changed” from 12 months ago.
It adds that the North East saw the biggest house price rise among English regions, up 3.6% to £165,000 in the 12 months to August, while the East of England saw the largest fall, down 1.6% to £351,000.
Propertymark chief executive Nathan Emerson says: “Our agents report that more and more tenants are falling into arrears but without government intervention to incentivise investment, this is going to worsen.
“The growing disparity in the number of homes available to rent when compared with increased demand from prospective tenants is alarming and continues to widen from already worrying levels.
“Governments across the UK need to urgently address the underpinning reason for these issues which is undersupply and must now look to adequately incentivise landlords to provide desperately needed homes in the private rented sector.”
Atom Bank head of mortgages Richard Harrison adds: “[House] prices continue to rise more slowly, with today’s data reflecting the challenging time the property market has experienced so far in 2023, with rising rates negatively impacting how much buyers are able to borrow as well as customer confidence.
“As a result, activity in the market has remained subdued and the latest Bank of England approval figures point to a marked reduction in purchase activity, with August’s numbers some 37% lower than the same period last year.
“This is particularly true in the South of England, which has seen house prices fall as people face ongoing affordability challenges.”
