Private rent edged up 1.2% in the year to June, according to the Office for National Statistics, as falls in London weighed on the national picture.

The East Midlands and West Midlands saw the highest annual growth in private rental prices, both rising by 2.4%, reports the official data body.

But London put in the lowest numbers across the UK’s regions, posting a 0.1% fall.

The ONS says: “This reflects both a decrease in demand, such as remote working shifting housing preferences meaning workers no longer need to be close to their offices, and an increase in supply, such as an excess supply of rental properties as short-term lets change to long-term lets.

“Growth in private rental prices paid by tenants in the UK remained broadly flat between November 2019 and the end of 2020. The beginning of 2021 has seen a slowdown in rental price growth, which has been driven by prices in London.

The data body adds: “In the 12 months to June 2021, rental prices for the UK excluding London increased by 1.8%, up from an increase of 1.7% in May 2021.

“London private rental prices decreased by 0.1% in the 12 months to June 2021, unchanged since May 2021.”

By nation, private rents grew by 1.1% in England, 1.5% in Wales and 1.2% in Scotland in the 12 months to June 2021.

The data comes amid rising concern about the demand for rental housing outstripping supply.

Earlier this month, a survey by the Royal Institution of Chartered Surveyors said that UK rents could rise by 3% over the next 12 months due to the squeeze on the supply of rented homes.

Tenant demand lifted in June, the said the Rics report, with a net balance of +60% noting a rise, up from +48% in May. By contrast, the shortfall in new landlord instructions intensified further, as a net balance of -32% said they had seen a decline.

The ONS also revealed today that UK inflation hit 2.5% in the year to June, driven by higher food and fuel costs.

This rate is the highest for almost three years, as the economy continues its pandemic recovery.

The Consumer Prices Index measure of inflation lifted from 2.1% in May, is above analyst’s forecasts, and is higher than the Bank of England’s 2% inflation target for the second month in a row.

The National Residential Landlords Association say the modest rent rises actually represent “a real-terms fall in rent”.

National Residential Landlords Association chief executive Ben Beadle adds: “Today’s figures burst the myth that landlords are hiking rents by as much as possible and demonstrate that market forces are the biggest influence on rent levels.

“It is clear also that the trend of renters moving out of the capital in response to the pandemic continues.

“That said, demand for privately rent homes continues to outstrip supply and without further efforts to meet that demand, rents will continue to rise.

“The government needs a strategy that properly recognises the importance of a thriving private rented sector in which tenants have genuine choices over where they rent.”