The rental market has shown signs of stabilising, with the pace of price growth slowing down in most regions across the UK, despite average private rents continuing to rise by 3.3% to £1,388 per month over the past year. According to new analysis from the National Residential Landlords Association (NRLA), overall rental growth currently stands at 3.3%, with prices increasing by just 1.32% since January 2026 – a figure that is below the Consumer Prices Index (CPI) inflation rate of 2.08% for the same period.
Regional variations reveal that rental prices in England have climbed by 1.32% since January 2026, while Wales saw a similar increase of 1.26%. Both figures are below the national CPI. The data also suggests that most English regions experienced a slowdown in rental price increases in the second period compared with the first, although London is an exception – where growth is accelerating at a rate exceeding inflation.
The NRLA attributes this divergence to structural changes within the rental market and the impact of recent legislation in London. This has contributed to faster rent increases in the capital, highlighting a deepening affordability crisis for renters. In contrast, other regions have seen more tempered growth.
For UK households, this mixed picture presents a complex challenge – while rental costs may be moderating in some areas, the burden remains significant, particularly in high-demand regions like London. The Bank of England's efforts to manage inflation will continue to influence interest rates and indirectly impact the buy-to-let mortgage market and rental prices.