Private rents lifted by 9% to £1,327 on average in the year to December, down from 9.1% a month ago, data from the Office for National Statistics shows. A rise of £110 over the last 12 months.
Rents rose 9.2% to £1,369 in England, by 8.5% to £777 in Wales and 6.9% to £991 in Scotland over the period.
In Northern Ireland, average rents increased by 8.6% in the year to October.
In England, rent inflation was highest in London, hitting 11.5%, and lowest in Yorkshire and The Humber coming in at 5.4% in the 12 months to December.
The rent rise last month was below the record-high annual rise of 9.2% last March.
However, annual wage growth came in at 5.2% between August to October, according to the latest data from the Office for National Statistics.
Hampshire Trust Bank, managing director, specialist mortgages & bridging finance, Alex Upton says: “Rents are climbing fast, and there’s no sign of this slowing. The latest Office for National Statistics data is yet another reminder of just how out of balance the rental market is.
“Rightmove’s recent figures show that enquiries per rental listing are almost double what they were before the pandemic, while Propertymark’s Housing Insight Report highlights that letting agents now juggle around seven prospective tenants for every available property.
“With this ongoing disparity, 2025 looks set to be a record-breaking year for rents.”
Propertymark chief executive Nathan Emerson adds: “The lettings market has been an extremely challenging prospect for many across the last twelve months, and we have witnessed the average cost of renting a property across the UK increase by more than £100 per month for many.
“At the same time, we continue to witness an enormous mismatch between supply and demand of rental properties with an average of seven people chasing each potential property advertised.
“The government needs to concentrate on supporting both tenants and landlords by boosting the supply of new rental homes as it proceeds with the Renters’ Rights Bill.
“There must be a fair and workable balance for all involved, and one that encourages long-term investment in the rental sector as the population quickly approaches 70 million people, up from 65 million only ten years back.”
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