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Rents rise year on year as pace of growth continues to slow

Rents rise year on year as pace of growth continues to slow

Average rents across the UK have continued to rise over the past year, although the pace of growth is showing further signs of slowing, according to the latest government data.

Figures show that average monthly private rents increased by 4.4% to £1,366 in the 12 months to November 2025. This represents a slowdown from the annual growth rate of 5.0% recorded in the year to October.

Across the nations, average rents rose to £1,422 in England (up 4.4%), £820 in Wales (up 6.1%) and £1,012 in Scotland (up 3.3%) over the same period. In Northern Ireland, average rents increased to £871, representing annual growth of 6.4%. Within England, rental inflation was highest in the North East at 8.4%, while London recorded the lowest rate of growth.

Jeremy Leaf, a north London estate agent and former chair of RICS Residential, said: “Now that the Renters’ Rights Act has become a reality, landlords can see the scale of change to their businesses more clearly. As a result, some are considering exiting the sector, with many waiting for a post-Budget uplift in sales activity. We therefore expect to see a further reduction in rental stock before the Act is fully implemented.

“However, affordability pressures, particularly linked to employment concerns, have limited tenants’ willingness to overpay, which helps to explain why rents are softening in some parts of the market.”

Nathan Emerson, Chief Executive of Propertymark, commented: “While it may be disappointing for many that rents have continued to rise overall, it is encouraging that rental inflation has been trending downwards throughout 2025.

“There remains an unhealthy imbalance between supply and demand, which continues to place upward pressure on rents. Although there has been welcome focus on raising standards and improving consumer protection for renters, it is equally vital that investment is encouraged to keep pace with growing demand as the population continues to expand.”

Richard Donnell, Executive Director at Zoopla, added: “Rental inflation is slowing due to weaker demand and around 20% more homes being available to rent. Lower migration levels and improving conditions for first-time buyers have contributed to demand for rented homes falling to a six-year low.”

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