The rate of growth was higher than the 3.4% recorded in the year to March.
Annual private rent inflation was highest in Wales, rising by 4.9% to £843 per month. This was followed by England, where rents rose by 3.5% to £1,438, and Scotland, with a 2% rise to £1,019.
In Northern Ireland, average rents rose 4% in the year to February, coming to £877 per month.
Within England, the North East saw the steepest rise in average monthly private rent, with a 6.5% increase to £776. This was flat on the rate of growth recorded in the year to March.
The lowest growth was seen in London, where rents rose 2% to £2,290. This growth was stronger than the 1.7% rise in the 12 months to March.
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The North East had the lowest average rent in England, while London had the highest.
Average rents were highest for detached properties at £1,571 and lowest for flats and maisonettes at £1,350.
Properties with four or more bedrooms had the highest average private rent at £2,055, while one-bedroom properties attracted the lowest rent at £1,121.
The ongoing supply-demand imbalance
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “Rent inflation has historically tracked wage inflation and we have seen this relationship harmonise in the past year following the severe upwards pressure on rents in the post-Covid era.
“The conflict in Iran is building some further inflationary pressure into the economy and that will likely to be reflected in the rental market in the coming months. Landlords are not immune to cost pressures and 72% of those planning to increase rent in the next year will do so because of the rising costs they face in operating their business, with six in 10 citing a higher tax burden following the 2025 Autumn Budget.”
She added: “Rising mortgage rates are often claimed to be a driver of rental inflation, but less than 40% of rental properties are mortgaged, with the vast majority of those subject to a fixed rate mortgage, so the impact of mortgage rates increasing is unlikely to be felt across the broader rental sector.”
Nathan Emerson, CEO of Propertymark, said the figures showed the continuing imbalance between tenant demand and the supply of homes available to rent.
He added: “While figures released today show an easing of inflation compared to the previous month, rents are still moving upwards because supply remains constrained in many local markets.
“Agents on the ground continue to report strong competition for good-quality rental homes, particularly for family properties and homes close to transport links and employment hubs. Many landlords are still weighing up rising costs, taxation and regulation, which is limiting the number of homes coming onto the market.
“What we are seeing is a supply issue rather than excessive demand. Without measures that support investment in the private rented sector, affordability pressures are likely to continue.”
