Rent increases have been cooling and are now lower than average pay rises – undermining new Prime Minister Andy Burnham’s reported enthusiasm for rent controls, new official data shows.

Data from the Office of National Statistics (ONS) reveals that rents increased by 3.3% on average nationally to £1,388 during the 12 months to June this year. Average monthly pay increased by 4.3% to June 2026.

The ONS doesn’t proffer a view on why this is taking place, but it is likely that tenants are increasingly rejecting properties that are too expensive rather than digging deep.

It is subduing demand for homes marketed at higher-than-average rents and leading landlords to drop asking prices.

Rental variations

Rent increases vary considerably by region – rents rose to £1,446 – at 3.4% – in England, £843 – 4.9%- in Wales, and £1,012 – 1.3% – in Scotland, in the 12 months to June 2026. In Northern Ireland, the figures are £877 – at 2.9% -, in the 12 months to April.

To underline the point on affordability in England, private rent annual inflation was highest in the North East at 6.3%, and lowest in London at 2.2%.

Landlords have pounced on these new figures to claim that they show rent controls are not necessary.

The annual rate of rental growth has fallen by almost two thirds since the current Housing Secretary warned that rent controls would hurt tenants.”

Chris Norris, Chief Policy Officer for the National Residential Landlords Association, says:  “At a time when there is growing speculation about the introduction of rent controls, today’s figures show that rent increases continue to slow significantly.

“The annual rate of rental growth has fallen by almost two thirds since the current Housing Secretary warned that rent controls would hurt tenants. At the same time, average earnings continue to grow faster than rents.

“As the reappointed Housing Minister [Matthew Pennycook] has recognised, the evidence from the UK and overseas is clear: Rent controls reduce the supply of homes to rent and ultimately leave tenants worse off.

“It would further undermine the Government’s welcome mission to end rough sleeping as access to the sector became harder for those who most need it.”