UK private rents lifted by 4.9% in the year to March, data from the Office for National Statistics shows, edging up from a 4.8% rise the month before.
Across the nations, Scotland posted the highest annual rental rises in March at 5.1%, followed by England at 4.6%, then Wales with 4.4%, as the shortage of available homes for rent continues.
In London, rents rose 4.8% over the period, higher than the average across England, with the capital posting its highest annual rate since December 2012.
Earlier this week, estate agent Hamptons said annual UK rents in March lifted 10.8%, hitting £1,236 per calendar month, the second fastest annual increase since the firm launched its lettings index a decade ago.
Andrews estate agents group chief executive Carl Howard says: “Renters need deeper pockets and sharper elbows as rocketing demand continues to outweigh the availability of homes to let.
“Another record rise in annual rental price growth reflects the frenzied market, which is showing no signs of letting up as the number of buy-to-let landlords dwindles.
“Rate hikes and red tape have combined to push some landlords towards the exit door as investment properties feel more trouble than they’re worth. Many older BTL investors nearing retirement are deciding to cash in these nest eggs, and they’re not being replaced.
“Landlords who continue to operate do so in the face of increased costs, squeezed margins and growing regulatory scrutiny. Meanwhile, house sales continue to fall, putting more pressure on the rental sector.”
Gravity Co co-founder chief executive Riccardo Tessaro adds: “With many private landlords exiting the market as their BTL sums no longer add up, and many younger people who might have bought a property now priced out of home ownership, there’s more demand for fewer rental properties.
“This is prompting many renters to explore purpose-built rental properties, where availability can be better, and to prioritise accommodation with a monthly price that includes bills, enabling them to fix their biggest outgoings as the cost of living rises.
“The only thing which can break the inflationary cycle is a better supply of homes to rent, including more high-quality purpose-built rental accommodation which provides many people with a place to live.”
