Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
England Rent Inflation Accelerates While Other Nations Slow
The latest ONS figures show average monthly private rent in the UK reached £1,400 in August 2026, £52 (3.8%) higher than 12 months earlier. Rental inflation is moving in different directions across the four nations, with England accelerating while Wales, Scotland and Northern Ireland all recorded slower annual growth.
England
Average monthly rent in England was £1,459 in August 2026, up 4.0% (£56) year on year and higher than the 3.8% rise recorded in the 12 months to July 2026.
Wales
Wales saw average monthly rent of £846, up 4.3% (£35) annually. That was lower than the 4.5% rise to July 2026 and below the most recent peak of 8.9% in March 2025.
Scotland
Scotland's average monthly rent stood at £1,013, up 1.1% (£11) year on year and down from 1.7% in the 12 months to July 2026.
Northern Ireland
Northern Ireland's figures (to June 2026) show average monthly rent of £874, up 1.6% (£14) annually. That is lower than the 2.3% rise to May 2026 and the lowest rate in nine years, with inflation generally slowing since the record 9.9% annual rise in April 2024.
What the Sector Is Saying
Alex Upton, managing director, specialist mortgages & bridging finance at Hampshire Trust Bank, said continued rental growth is masking pressures landlords face. Commenting on the figures, which follow HMRC data showing property rental income at a five-year high, she noted that landlord costs have risen by 11% over the last year and 56% over five years, so higher rents do not automatically mean stronger returns.
According to Upton, many landlords are reassessing where they deploy capital, widening the gap between those professionalising and restructuring portfolios and those deciding the economics no longer justify remaining in the sector. She reported particular interest in HMOs and specialist property types, and added that build to rent is adding stock in some parts of the market but cannot replace the breadth of supply provided by individual and professional landlords.
Jeremy Leaf, north London estate agent and former RICS residential chairman, said the principal problem in lettings is the failure to replace landlords selling up, largely due to recently introduced tax and regulatory measures. He said demand for larger flats and houses cannot be satisfied, adding upwards pressure on rents and lowering standards, with some landlords feeling less pressure to improve properties now tenants can give just two months' notice under the Renters' Rights Act.
Source: Mortgage Strategy