Private rents were up 8.7% in the year to January, to an average of £1,332 across Britain, according to official government data from the Office for National Statistics.

In England, rent inflation was highest in London at 11% and lowest in Yorkshire and The Humber at 5.3%.

All figures were higher than many observers expected, and have struck alarm into some in the industry.

Propertymark chief executive Nathan Emerson says: “Increases in rental prices across the UK have been an ongoing concern and our member agents continue to emphasise key issues regarding the continuous trend of lack of rental stock versus an ever-growing number of tenants looking for homes.

“Selling up altogether or turning to the short-term letting market is becoming a more attractive option for landlords due to the challenging legislative changes and increased financial liabilities they face.

“It’s crucial that a healthy mix of homes of all types and tenures is encouraged throughout the entire UK. Governments across all nations have made various pledges regarding housing building targets, however, a crucial factor to ensure is that good landlords providing secure and decent homes to the nation are supported and not penalised.”

Alex Upton of the Hampshire Trust Bank notes: “The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property, and while stock levels have seen some movement, competition remains fierce. Until supply and demand move closer to balance, rental prices will keep climbing.

“But addressing this isn’t just about building more homes. The greater opportunity right now is in making better use of existing housing stock. Investors are focusing on refurbishment and conversion – revitalising underused properties and bringing them back into the rental market. This isn’t just a short-term fix; it’s an essential part of increasing supply in a meaningful way.

“For this to happen at scale, lenders must step up. Investors need financial support that enables them to move quickly, alongside planning frameworks that support these projects rather than slow them down. Without that, pressure on tenants and landlords alike will only intensify.”

Richard Donnell, executive director at Zoopla, comments: “The rental market continues to be stuck in a supply/demand imbalance which is keeping an upward pressure on rents. Zoopla data shows there are 22% more homes for rent than a year ago but availability remains below the pre-pandemic period. 

“The ONS rental index tracks the value of all rented homes and remains high at 8.7% as the recent rapid growth in rents impacts the market. Zoopla’s latest index for new lets shows rents have slowed to four per cent, down from 8.0% a year ago. Rental growth has slowed more rapidly in London, down to less than two per cent for new lettings. The pace at which rents rise across all existing rented homes is slower and reflected in the ONS index which shows how rents are re-aligning across the wider market. Once this has worked through the market the ONS will also register slower rent inflation.”

Meanwhile Sarah Coles, head of personal finance at business consultancy Hargreaves Lansdown, sees it this way: “Renting makes everything harder, and rising rents are adding to the misery. It puts tenants on the back foot when it comes to every aspect of their finances.

“The Hargreaves Lansdown Savings and Resilience Barometer shows that renters have an average of just £62 left at the end of the month, compared to those with a mortgage who have £309. It means fewer than half have managed to put aside enough emergency savings (46%), compared to three quarters (74%) of those with a mortgage. They’re suffering when it comes to the long term too, because only 15% are on track with their pension.

“While rent rises are slowing, they’re still horrible, and there doesn’t appear to be much hope in sight.”