Average UK monthly private rents increased by 3.5% to £1,381 in the 12 months to April, according to the latest ONS Price Index of Private Rents.

Rents were up to £1,438 (3.5%) in England, £834 (4.9%) in Wales, and £1,019 (2%) in Scotland, while in Northern Ireland, average rents increased to £877 (4%), in the 12 months to February.

In England, private rents annual inflation was highest in the North East (6.5%), and lowest in London (2%) while average rent was highest in London (£2,290) and lowest in the North East (£776).

Nathan Emerson, CEO of Propertymark, says the data indicates a supply issue rather than excessive demand. “While figures released today show an easing of inflation compared to the previous month, rents are still moving upwards because supply remains constrained in many local markets,” he adds. “Many landlords are still weighing up rising costs, taxation and regulation, which is limiting the number of homes coming onto the market."

Conflict

The conflict in Iran is building some further inflationary pressure into the economy and that will likely to be reflected in the rental market in the coming months, says Louisa Sedgwick, managing director of mortgages at Paragon Bank. “Landlords are not immune to cost pressures and 72% of those planning to increase rent in the next year will do so because of the rising costs they face in operating their business, with six in 10 citing a higher tax burden following the 2025 Autumn Budget,” says Sedgwick.

“Rising mortgage rates are often claimed to be a driver of rental inflation, but less than 40% of rental properties are mortgaged, with the vast majority of those subject to a fixed-rate mortgage, so the impact of mortgage rates increasing is unlikely to be felt across the broader rental sector.”

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