Rent increase pressure has eased in the past year, but comes amid warnings from the NRLA that more rental homes are needed.

News that rent rises have halved in the past 12 months also masks stark regional differences, according to the NRLA.

Data from the Office for National Statistics, (ONS), shows that average monthly private rents across Britain increased by 3.3% in the 12 months to May this year. The rate is down from the 7% rise seen in the year to May 2025.

The ONS figures also demonstrate a changing regional picture, with rent increases ranging from 2% in London to 5.9% in the North East of England.

The fact remains that we still need more rental homes.”

Chris Norris, Chief Policy Officer at the NRLA (pictured), says: “Today’s data continues to point to a national rental market under less pressure, with the gap between demand and supply continuing to narrow.

“However, the national picture masks considerable regional variation. Tenants in the North East continue to face some of the biggest gaps between the homes they need and what is available to rent.

“The private rented sector has proved resilient in the face of strong headwinds of change, but the fact remains that we still need more rental homes alongside all other types of housing.

“Policy needs to reflect this, beginning with scrapping next year’s planned tax hike on rental income, the cost of which will ultimately be borne by tenants.”

Industry reaction

Tom Bill, Head of UK Residential Research at Knight Frank, says: “Rental value growth remains stubborn and rents are around a third higher than before Covid.

“The reality of the Renters’ Rights Act and the prospect of future legislation may encourage more landlords to sell up, which means tenants will continue to feel financially squeezed.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Often we have found on the ground that lettings activity and rents are in inverse proportion to sales.

“This time around though, while sales are rather subdued, lettings are also still sluggish.

“A significant proportion of landlords are selling due to concerns about the Renters’ Rights Act which is still underpinning rents, but worries about the cost of living have kept a lid on any further increases.

“Looking forward we don’t expect to see much change but if inflation continues to level, then a modest increase in rents is probably unstoppable.”

Nathan Emerson, Chief Executive of Propertymark, says: “Continued rental growth demonstrates the ongoing imbalance between supply and demand within the private rented sector.

“Letting agents across the UK continue to report strong tenant demand alongside a shortage of available properties. Increasing the supply of rental housing must remain a priority if affordability pressures facing tenants are to be addressed.”

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