The average monthly rent in England reached £1,466 in September, up 4% (£56) year-on-year, matching the annual increase recorded the previous month.
In Wales, average rents rose by 4.1% (£33) to £848 per month. However, this marked a slowdown from the 4.3% annual growth seen in August and was well below the recent peak of 8.9% recorded in March 2025.
Scotland recorded the weakest rental growth, with average monthly rents rising by just 0.7% (£7) to £1,011. The annual increase was down from 1.1% in August and represented the lowest annual growth rate since records began in January 2016.
Meanwhile, average monthly rents in Northern Ireland stood at £879 in July 2026, up 1.7% (£14) on the year before.
Regionally, the North West continued to see the strongest rental inflation in England, with rents increasing by 5.7% annually, although this was slightly down from 5.8% in August.
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London and the South East recorded the lowest rates of rental inflation at 3.5%. London’s rate was unchanged from August, while the South East saw annual growth rise from 3%.
Despite slower growth, London remained the most expensive place to rent, with average monthly rents of £2,338. The North East remained the cheapest region at £790 per month.
Low stock translates to higher rents
Last week, the National Residential Landlords Association (NRLA) highlighted that as a result of a shortage in rental supply, landlords were seeing an increase in their rental yields.
Jeremy Leaf, North London estate agent and former Royal Institution of Chartered Surveyors (RICS) residential chair, suggested the Renters’ Rights Act could be contributing to a reduction in available rental stock.
He said: “Perhaps one of the unintended consequences of the Renters’ Rights Act finds rents and demand still growing steadily, partly due to landlords selling up with more to come as tenancies end.”
Leaf added that concerns around regaining possession from difficult tenants were being cited by landlords considering an exit from the market.
He said: “We’ve noticed too that aspiring first-time buyers are renting for longer to save for larger deposits before taking advantage of the government’s new Your First Home move scheme, which is distorting activity.”
Amy Reynolds, head of sales at Antony Roberts, said high rents reflected the number of landlords leaving the sector.
She said: “Rents are high because so many landlords have sold or are trying to sell.”
Reynolds added that more cost-conscious tenants were gravitating towards lower-maintenance homes, with ex-council flats remaining popular due to their lower running costs.
Alex Upton, managing director for specialist mortgages and bridging finance at Hampshire Trust Bank (HTB), said demand for quality rental accommodation remained strong but was no longer enough on its own to encourage investment.
She said higher borrowing and operating costs meant investors were increasingly focused on long-term performance, portfolio fit and opportunities to improve returns through refurbishment or alternative strategies.
Upton added: “The concern is that we are not seeing enough new landlord investment to make a meaningful difference to the availability of homes.”
