Private rents increased by 6.7%, to an average of £1,344 a month, in the year to June, according to official data.
This is down from a 7% rise in the year to May, Office for National Statistics provisional estimates show.
Across the nation, average rents lifted 6.7% to £1,399 in England, by 8.2% to £804 in Wales, and by 4.4% to £999 in Scotland, in the 12 months to June.
In Northern Ireland, average rents rose 7.6% to £852 in the year to April.
In England, private rent annual inflation was highest in the North East, at 9.7%, and lowest in Yorkshire and the Humber, at 3.5%, in the year to June.
London’s annual inflation was 7.3% in the period, down from 7.7% in the 12 months to May 2025. This was the seventh consecutive month of slowing annual inflation.
Average rent across the country was highest in London, at £2,252, and lowest in the North East, at £734, in the period.
Paragon Bank managing director of mortgages Louisa Sedgwick says: “The cooling of rent inflation is a step in the right direction, but at 0.3% percentage points, it’s a small step and comes from the record high recorded last year.
“This means that rents are still increasing at a faster rate than they were before the pandemic, driven by the continued imbalance between supply and demand for rental homes.
Sedgwick adds: “Over the long term, projected demographic changes and population growth are likely to propel demand for rented homes.
“Creating the conditions to enable landlords to invest and increase the supply of private rented properties to meet this demand will help to limit rent inflation, making renting more affordable for tenants and providing them with a greater choice of places to live.”
Hampshire Trust Bank managing director, specialist mortgages & bridging Alex Upton points out: “Yes, rents are still rising, but the pace has eased compared to last year.
“The mismatch between supply and demand remains the main driver, although there are early signs of the market starting to rebalance.
Upton adds: “The question is what comes next, particularly as the Renters’ Rights Bill moves closer. It is already prompting many landlords to reconsider their plans.
“Some have decided to exit the sector altogether, which only increases pressure on available stock.
“Others are exploring how to adapt, whether that means rebalancing their portfolios, investing in improvements or preparing for a more regulated environment.”
