Rents rose to £1,375 (8.8%) in England, £780 (8.4%) in Wales and £995 (6.2%) in Scotland, in the 12 months to January 2025, said the Office for National Statistics.
In Northern Ireland, average rents increased by 8.3% in the 12 months to November 2024, which is the latest figure.
In England, rental inflation was highest in London (11%) and lowest in Yorkshire and The Humber (5.3%), in the 12 months to January 2025.
Average rent was highest in London (£2,227) and lowest in the North East (£710) in January 2025.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Renting makes everything harder, and rising rents are adding to the misery. It puts tenants on the back foot when it comes to every aspect of their finances.
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“The HL Savings and Resilience Barometer shows that renters have an average of just £62 left at the end of the month, compared to those with a mortgage who have £309. It means fewer than half have managed to put aside enough emergency savings (46%), compared to three quarters (74%) of those with a mortgage. They’re suffering when it comes to the long term too, because only 15% are on track with their pension.”
Alex Upton, managing director of specialist mortgages at Hampshire Trust Bank, added: “The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property, and while stock levels have seen some movement, competition remains fierce. Until supply and demand move closer to balance, rental prices will keep climbing.
“But addressing this isn’t just about building more homes. The greater opportunity right now is in making better use of existing housing stock. Investors are focusing on refurbishment and conversion – revitalising underused properties and bringing them back into the rental market. This isn’t just a short-term fix; it’s an essential part of increasing supply in a meaningful way.”
