Average UK private rents increased by 8.7% in the 12 months to January 2025, the latest Office for National Statistics data shows.
The latest figure is down from 9.0% in the 12 months to December 2024.
Average rents increased by 8.8% to £1,375 in England, by 8.4% to £780 in Wales and by 6.2% to £995 in Scotland, in the 12 months to January 2025.
In Northern Ireland, average rents increased by 8.3% in the 12 months to November 2024.
In England, rents inflation was highest in London at 11.0% and lowest in Yorkshire and The Humber at 5.3%, in the 12 months to January 2025.
Commenting on the latest data, Propertymark chief executive officer Nathan Emerson says: “Increases in rental prices across the UK have been an ongoing concern and our member agents continue to emphasise key issues regarding the continuous trend of lack of rental stock versus an ever-growing number of tenants looking for homes.”
“Selling up altogether or turning to the short-term letting market is becoming a more attractive option for landlords due to the challenging legislative changes and increased financial liabilities they face.”
“It’s crucial that a healthy mix of homes of all types and tenures is encouraged throughout the entire UK. Governments across all nations have made various pledges regarding housing building targets, however, a crucial factor to ensure is that good landlords providing secure and decent homes to the nation are supported and not penalised.”
Hampshire Trust Bank managing director Alex Upton states: “The rental market remains under significant pressure, with demand continuing to outstrip supply.”
“Letting agents are managing multiple applicants for every available property, and while stock levels have seen some movement, competition remains fierce. Until supply and demand move closer to balance, rental prices will keep climbing.”
“But addressing this isn’t just about building more homes. The greater opportunity right now is in making better use of existing housing stock. Investors are focusing on refurbishment and conversion – revitalising underused properties and bringing them back into the rental market. This isn’t just a short-term fix; it’s an essential part of increasing supply in a meaningful way.”
“For this to happen at scale, lenders must step up. Investors need financial support that enables them to move quickly, alongside planning frameworks that support these projects rather than slow them down. Without that, pressure on tenants and landlords alike will only intensify.”
Jackson-Stops chairman Nick Leeming comments: “Limited supply in certain local markets and an air of reservation in December saw house prices grow modestly, providing stability as the market anticipates new opportunities and a busier spring following a more reserved 2024.”
“Across Jackson-Stops’ network, local areas such as Chester, Cranbrook, Oxted, Truro, Dorking and Woking have already started the new year with a significant influx in the number of new applicants registering their interest compared to the number of new instructions coming on to the market.”
“This trend is reflective of a more committed pipeline of buyers moving forward with purchases not just because they need to, but because they want to.”
