Rents charged for new tenancies across the UK are continuing to rise sharply as landlords seek to offset higher costs and supply continues to be weak, latest Government data shows.

The Office for National Statistics (ONS) says that over the past 12 months rents increased by 9.1%, up from 8.7% for the previous period.

These figures hide huge differences in rental values and increases, which are for properties being re-let with new tenancies. The average rent is currently £1,362 in England, £772 in Wales and £980 in Scotland.

Increases have been greatest in London (+11.6%) and lowest in Yorkshire and the Humber (+5.7%).

One unusual aspect of the data released by ONS is that while house prices have yet to recover from the disastrous Liz Truss budget, which saw average values decrease by 3% at one point in 2023, rents have continued to climb over the past four years.

Challenging

Nathan Emerson (pictured), CEO at Propertymark, says: “The lettings market continues to prove challenging to those who rent.

“Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.

“It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next ten years.

"It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep a objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand."