Rents still rising steeply but will get worse

Private rents across the UK continue to rise, albeit at a slightly slower annual growth rate than before. In March 2025, rents averaged £1,332 per month, a 7.7% increase year-over-year. Regional variations include England (£1,386, 7.8%), Wales (£792, 8.9%), Scotland (£1,001, 5.7%), and Northern Ireland (£838, 8.2%). Inflation for rents ranged from 9.4% in the North East of England to 4.6% in Yorkshire and The Humber.

Experts warn that pressures will worsen, fueled by green regulations, mortgage costs, and the Renters Rights Bill. Landlords are exiting the sector, reducing rental supply amid climbing demand. Affordability is becoming critical, with housing benefits failing to bridge the gap between market rents and support levels. Only 2.5% of rentals in England are affordable on benefits, leaving millions struggling.

Industry professionals highlight legislative impacts, limited supply, and tenant resistance to further increases. Calls for targeted support and investment in the rental sector are growing to address these challenges.