According to official data, private rents increased by 6.7% in the year to June, an average of £1,344 per month.
This is a 7% decrease from 7% in May, the National Bureau of Statistics’ Interim Estimates Office.
Nationally, average rents in England rose 6.7 per cent to £1,399, average rents in Wales rose 8.2 per cent to £804 in the 12 months so far, and average rents in Scotland rose 4.4 per cent to £999 in Scotland.
In Northern Ireland, average rents rose 7.6 per cent to £852 in the year to April.
In England, the annual inflation rate of private rents is the highest in the Northeast, with Yorkshire and the Humber the lowest in the year to June and Yorkshire and the Humber the lowest.
London’s annual inflation rate during this period was 7.3%, down from 7.7% in the 12 months in May 2025. This is the seventh consecutive month of annual inflation decline.
In London, the average rent in the country is the highest at £2,252 and the lowest in the Northeast, with £734 during this period.
“The cooling of rent inflation is a step in the right direction, but at the 0.3% percentage point, it’s a small step and from the record recorded last year,” said Managing Director of Paragon Bank Mortgage Commissioner Louisa Sedgwick.
“This means that rents are still increasing faster than before the pandemic due to the ongoing imbalance between supply and demand for rental housing.
Sedgwick added: “In the long run, the expected population changes and population growth may drive demand for rental housing.
“Creating conditions that allow landlords to invest in and increase private property supply to meet this demand will help limit rent inflation, thus making rents more affordable and providing them with a larger place to live.”
“Yes, rents are still rising, but the pace has been eased compared to last year,” said Alex Upton, managing director of Hampshire Trust.
“Although the market begins to rebalance, the mismatch between supply and demand remains the main driver.
Upton added: “The question is what happens next, especially as the renter’s bill of rights is getting closer. It has prompted many landlords to rethink their plans.
“Some people decide to exit the industry altogether, which only increases pressure on available stocks.
“Others are exploring how to adapt, whether that means rebalancing their portfolios, investing in improvements or preparing for a more regulated environment.”
