Average UK private rents increased by 8.4% in the 12 months to August, down from 8.6% in the 12 months to July.
The latest ONS figures show that rents jumped to £1,327 (8.5%) in England, £752 (8.5%) in Wales, and £969 (7.6%) in Scotland during the last year. In Northern Ireland, average rents increased by 9.9% in the 12 months to June.
Wales’s annual inflation rate has been generally slowing since the record-high annual rise of 9.8% in November 2023 while Scotland’s annual inflation rate has also been slowing since the record-high annual rise of 11.8% seen last August.
London was the English region with the highest rental inflation at 9.6%, says the ONS, although this annual rise was lower than in the 12 months to July (9.7%), and below the record-high annual rise of 11.2% in March. The South West saw the lowest inflation (6.4%).
Kensington and Chelsea (£3,418) and Dumfries and Galloway in Scotland (£483) were at the opposite ends of the price scale.
Propertymark’s CEO Nathan Emerson says the rental market continues to operate with a very strong headwind, as many landlords battle increased overheads and uncertainty regarding future legislation.
He adds: “Landlords have faced a complex combination of high inflation, interest rates, maintenance costs and a more demanding taxation structure over the last few years. In turn, this has had a profound impact on their ability to operate and in some circumstances has forced good landlords to make the difficult choice to sell up and leave the sector.”
Average UK house prices increased by 2.2% to £290,000 in the 12 months to July, down from 2.7% in the 12 months to June. Prices increased in England to £306,000 (1.6%), in Wales to £218,000 (2%), and in Scotland to £199,000 (6%).
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