Average UK monthly private rents increased by 8.1%, to £1,326, in the 12 months to February, according to government figures.

This annual growth rate is down from 8.7% in the 12 months to January 2025.

Average rents increased to £1,381 (8.3%) in England, £785 (8.5%) in Wales, and £998 (5.8%) in Scotland, in the 12 months to February.

In Northern Ireland, average rents increased to £832 (8.1%) in the 12 months to December 2024.

In England, private rents annual inflation was highest in London (9.9%) and lowest in Yorkshire and The Humber (4.8%), in the 12 months to February 2025.

Meanwhile on the sales side, average UK house prices increased by 4.9%, to £269,000, in the 12 months to January.

This is up from 4.6% in the 12 months to December 2024.

Tom Bill, head of UK residential research at Knight Frank, says: “The Renters Rights Bill creates uncertainty for landlords which may put upwards pressure on rents at a time when they are starting to come down from the highs of recent years. 

“A piece of legislation intended to make life easier for tenants may inadvertently have the opposite effect if the supply of rental properties tightens.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Perhaps not surprisingly rents – though still high – are not growing as fast as they have been while affordability becomes more of an issue. 

“On the ground we are finding landlords are leaving the sector in response to tough tax and regulatory measures and worries about the forthcoming Renters’ Rights Bill although many are waiting to see the final version before making a decision.”

Commenting on the increase in private rental prices, Propertymark chief executive Nathan Emerson states: “With there being a decreased focus on the supply of new rental properties in the UK Government’s Renters’ Rights Bill, it sadly comes as little surprise that rents continue to increase. 

“However, there are reasons to believe that they have not increased at the rate they have done in previous years. For example, recent data has found that annual rent inflation for new lets is running at its lowest level for 3.5 years.  

“Propertymark recognises that the UK Government’s aim is to safeguard renters and give them greater security. However, an unintended consequence of continued legislation placed on landlords is a real concern echoed across the industry as overly prohibitive regulations will likely contribute to a reduced supply of rental homes, an increase in rent prices, and make it harder for people to find affordable housing.” 

Finally Gareth Atkins, Managing Director of Lettings, comments: “The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years. Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing.

“At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing. With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.”