Reports show that the average UK monthly private rent inflation has continued to slow. Mortgage Strategy says the provisional estimate is an increase by 3.3% (to £1,383) in the 12 months to May 2026. This annual growth rate is down from 3.5% in the 12 months to April 2026, according to the latest data from the Office for National Statistics (ONS). However, despite this positive change, regional pressures remain with tenant demand highest in the North East.
The boom in rent
An analysis from Zoopla has shown that all over the UK the gap between demand and supply in the rental market is shrinking, with “an average of just under six enquires per rental property, down from a peak of over 15 in 2022.”
Zoopla executive director of research, Richard Donnell, said: “The boom in rents is over and the pace of rent increases is slowing on a weaker labour market and a big drop in migration into the UK. A period of more sustainable growth in rents will be welcome news for renters while providing continued growth in income for landlords to offset higher costs of doing business.”
Regional pressures
While the rate of growth in private rents has more than halved over the past year, the data highlights continuing regional pressures, with the highest levels of tenant demand recorded in the North East.
The NRLA says that the data warns that “despite the softening in demand, the gap still exists – with new investment in private rented housing remaining low.”
ONS data reveals a shifting regional landscape, with annual rent increases ranging from 2% in London to 5.9% in the North East of England.
The figures reinforce recent NRLA research indicating that the North East is now experiencing by far the strongest demand for rental homes.
Chris Norris, NRLA chief policy officer, said: “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."
