Private rents elevated by 6.7%, to a median of £1,344 a month, in the yr to June, in accordance to official information.
This is down from a 7% rise in the yr to May, Office for National Statistics provisional estimates present.
Across the nation, common rents lifted 6.7% to £1,399 in England, by 8.2% to £804 in Wales, and by 4.4% to £999 in Scotland, in the 12 months to June.
In Northern Ireland, common rents rose 7.6% to £852 in the yr to April.
In England, personal hire annual inflation was highest in the North East, at 9.7%, and lowest in Yorkshire and the Humber, at 3.5%, in the yr to June.
London’s annual inflation was 7.3% in the interval, down from 7.7% in the 12 months to May 2025. This was the seventh consecutive month of slowing annual inflation.
Average hire throughout the nation was highest in London, at £2,252, and lowest in the North East, at £734, in the interval.
Paragon Bank managing director of mortgages Louisa Sedgwick says: “The cooling of hire inflation is a step in the appropriate path, however at 0.3% proportion factors, it’s a small step and comes from the file excessive recorded final yr.
“This implies that rents are nonetheless growing at a quicker fee than they have been earlier than the pandemic, pushed by the continued imbalance between provide and demand for rental properties.
Sedgwick provides: “Over the long run, projected demographic modifications and inhabitants progress are seemingly to propel demand for rented properties.
“Creating the situations to allow landlords to make investments and enhance the provision of personal rented properties to meet this demand will assist to restrict hire inflation, making renting extra reasonably priced for tenants and offering them with a larger selection of locations to reside.”
Hampshire Trust Bank managing director, specialist mortgages & bridging Alex Upton factors out: “Yes, rents are nonetheless rising, however the tempo has eased in contrast to final yr.
“The mismatch between provide and demand stays the principle driver, though there are early indicators of the market beginning to rebalance.
Upton provides: “The query is what comes subsequent, notably because the Renters’ Rights Bill strikes nearer. It is already prompting many landlords to rethink their plans.
“Some have determined to exit the sector altogether, which solely will increase strain on obtainable inventory.
“Others are exploring how to adapt, whether or not which means rebalancing their portfolios, investing in enhancements or making ready for a extra regulated atmosphere.”
