The UK's rental market is showing signs of slowing down, with private rents rising by just 3.3% in the past year to an average £1,383 per month, according to the Office for National Statistics (ONS). This marks a slight decrease from April's 3.5% annual growth, as the property market simultaneously sees renewed acceleration in house price growth.
In England, rents increased by 3.4% to an average of £1,442 per month, while Wales saw a sharper rise of 4.7%, pushing average rents to £836. Scotland recorded the weakest increase among the three nations, with average rents up just 1% to £1,009. Within England, the North East reported the strongest rent inflation at 5.9%, contrasting with London, which saw the lowest annual rent growth at 2.0% in the year to May. Northern Ireland's average rents, reported up to March 2026, reached £876, an annual rise of 3.3%.
The acceleration in house prices in April follows a period of stagnation in March. This increase is partly attributed to a comparison with April 2025, when prices dropped sharply after Stamp Duty Land Tax changes took effect in England and Northern Ireland. In England, the average house price rose by 3.9% to £291,000 in the year to April, while Wales saw a 3.5% increase to £212,000, and Scotland experienced a 2.8% rise to £192,000.
Industry experts warn that while the slowdown in rent growth may offer some respite for tenants, affordability remains a significant concern. Tom Bill of Knight Frank notes that rental values are still approximately a third higher than pre-Covid levels. He warns that future legislation could encourage more landlords to sell, exacerbating the supply shortage and keeping financial pressure on tenants.
Nathan Emerson of Propertymark highlights the ongoing imbalance between supply and demand in the private rented sector, with strong tenant demand outstripping available properties. Richard Donnell of Zoopla suggests that a period of more sustainable rent growth would be beneficial for renters, while providing landlords with a consistent income to manage higher operating costs.
Alex Upton of Hampshire Trust Bank points out a 'two-speed' rental market, where lower-cost areas are experiencing stronger growth than more expensive locations. This complex picture highlights the challenges facing tenants and landlords alike in today's property market.