Private rents across the UK have seen a 3.7% increase in the 12 months leading up to July 2026, with the average rent now standing at £1,393, the Office for National Statistics (ONS) reports. This marks an acceleration from the 3.3% annual growth rate recorded in the 12 months to June 2026.
Concurrently, the ONS indicates a slowdown in UK house price growth, which rose by 2.0% to an average of £272,000 in the 12 months to June 2026. This is a decrease from the 3.0% annual growth observed in the 12 months to May 2026.
Industry experts suggest that the Renters’ Rights Act is an unintended factor contributing to the increase in rents. Tom Bill, head of UK residential research at Knight Frank, noted that some landlords have exited the sector, reducing supply, while others have raised asking rents due to increased financial risks.
Regionally, average rents in the 12 months to July 2026 increased to £1,451 (3.8%) in England, £843 (4.5%) in Wales, and £1,016 (1.7%) in Scotland. In England, the North East saw the highest annual private rent inflation at 6.3%, while the South East recorded the lowest at 2.9%.
Richard Donnell, executive director of research at Zoopla, attributed the slowdown in house price growth to higher mortgage rates impacting buying power. He also suggested that higher borrowing costs are causing first-time buyers to rent for longer, which supports demand for rented homes and steady rent growth.