The Office for National Statistics official government lettings index shows that private rental prices paid by tenants in the UK increased by 6.1 per cent in the 12 months to October 2023.

This is the biggest annual percentage change since comparable records started in January 2016.

Rental prices in London rose by 6.8 per cent annually in October – the highest annual rate since records for London started in January 2006.

Annual private rental prices increased by 6.0 per cent in England, 6.9 per cent in Wales, and 6.2 per cent in Scotland in the 12 months to October 2023.

A separate ONS report on the sales market shows that average UK house prices decreased by 0.1% in the 12 months to September.

The ONS says the decline, which compares to a revised 0.8 per cent increase in August, was the first official fall since April 2012.

The cost of an average house in the UK was £291,000, little changed on September 2022. By region, the biggest falls were seen in Wales, where prices slid 2.7 per cent to £215,000. In England they dipped 0.5 per cent to £310,000 although in Scotland they rose 2.5 per cent to £195,000.

Month-on-month, house prices decreased 0.5 per cent in September on a seasonally-adjusted basis.