Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
UK private rents rise 3.8% in August as growth accelerates – ONS
The typical monthly private rent in the UK rose 3.8% in the year to August, averaging £1,400, according to Office for National Statistics (ONS) data. That is up from 3.7% the previous month and marks the highest annual inflation rate since December last year.
Regional picture
Wales recorded the strongest rental growth across the UK, with a 4.3% rise to £846. England followed with a 4% annual increase to £1,459, the highest average of any nation. In Scotland, average private monthly rent was £1,013, up 1.1% year-on-year, while Northern Ireland data (available only up to June) showed a 1.6% yearly rise to £874 per month.
Within England, the North East and North West saw the largest increases, both recording inflation of 5.8%, to £969 and £788 respectively. This represented a slowdown for the North East, down from 6.3%, but an acceleration for the North West, up from 5.7%.
The South East continued to replace London as the region with the slowest rate of rental growth, rising 3% to an average of £1,426, though this was up from 2.9% in July. London rents rose 3.5% year-on-year to £2,332, their highest inflation since October 2025. London remained the most expensive region to rent, while the North East held its place as the cheapest.
Supply pressures
Jeremy Leaf, North London estate agent and a former RICS residential chair, said the main problem in the rental market was the failure to replace the significant number of landlords selling up, mainly due to recently introduced tax and regulatory measures. He noted the market was unable to satisfy demand for larger flats and houses in particular, adding to upward pressure on rents and lowering standards. Leaf also observed that some landlords feel less pressure to improve properties, especially as tenants can now give just two months' notice under the Renters' Rights Act.
Alex Upton, managing director for specialist mortgages and bridging finance at Hampshire Trust Bank, said continued rental growth is masking pressures landlords are dealing with. Citing HMRC data showing property rental income at a five-year high, Upton noted the same data shows landlord costs have risen by 11% over the last year and 56% over the last five years, meaning higher rents do not automatically mean stronger returns.
Upton said 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. There is particular interest in houses in multiple occupation (HMOs) and other specialist property types, while build to rent is adding stock in some parts of the market but cannot replace the breadth of supply provided by individual landlords.
Source: Mortgage Solutions