Figures from the Office for National Statistics (ONS) showed that the rate of rental growth continued to ease, as this was notably lower than the 6.7% rise seen in the year to June.
In England, private rents were 6% higher at an average of £1,398, while in Wales, a 7.9% rise put rents at £807 per month.
Scotland recorded a 3.6% increase to £999 a month, while private rents in Northern Ireland were 7.4% up in the 12 months to May at £855.
All nations saw the rate of private rental growth slow.
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Regional and property differences
The North East continued to have the highest annual rent inflation out of all the English regions, at 8.9% to £912.
Again, rental growth was the lowest in Yorkshire and the Humber, at 3.5% to £822 per month on average.
The costliest private rent was in London, averaging £2,250 per month, and the most affordable was in the North East.
Detached properties attracted the highest rent in July, averaging £1,531, while flats and maisonettes were the lowest at £1,318.
Properties with four or more bedrooms had the highest average rental price, at £2,003, and one-bedroom properties had an average rent of £1,091.
Chronic rental supply shortage continues
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Runaway rent inflation is flagging like a parent at the tail end of the school holidays. Stratospheric rent rises of around 10% have given way to a far less strenuous 5.9%. The problem for renters is that this has been cumulative. Rises on top of rises mean they’re paying far more to put a roof over their heads.
“Some of the easing in rent rises has been caused by a slight reduction in the number of new tenants, priced out by rising rents, which continue to climb ahead of average wages. It means that despite fewer properties coming to the market, demand is not outstripping supply in quite the same way it was.”
Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank (HTB), added: “Rents are still edging upwards, but there are signs that tenant demand has eased slightly over the summer.
“Even so, a modest slowdown doesn’t change the underlying picture. We are still significantly short of the rental stock needed to meet demand, and that structural gap will keep upward pressure on rents for the foreseeable future.”
Upton continued: “While the market may be adjusting at the margins, the long-term fundamentals haven’t shifted. Professional landlords will continue to invest in quality assets, and strategic portfolio planning remains essential. Securing the right funding and preparing for future regulation will be critical in navigating what comes next.
“Over time, it’s also vital that we focus on the right kind of supply. A resilient rental market depends not just on volume, but on quality, accessibility and long-term affordability. Achieving that requires joined-up thinking, targeted investment and policy that supports both tenants and landlords.”
