Figures from the Office for National Statistics (ONS) revealed that this was £101 higher than average rents a year ago. 

In England, the typical rent went up by 8.6% to £1,319, an additional £104 since last year. This was flat on the annual growth recorded in June, but below the recent 9.1% high seen in March. 

Within England, London had the highest rent inflation at 9.7% in the year to July, coming to an average of £2,114. This was unchanged from the 12 months to June and below the record-high annual rise of 11.2% seen in March. 

The North East saw the lowest annual inflation in rent at 6.1% to £676. However, this was a record-high rate of growth for the region. 

 

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Average private rents across Great Britain 

The average rent in Wales came to £748 in July. This represented a 7.9% or £55 increase on the same month last year. 

This was lower than the 8.2% yearly increase seen in June, and the ONS said the rate of annual growth in Wales had been slowing since a record-high annual rise of 9.8% was seen in November last year. 

In Scotland, the average private rent was £965 in July, an 8.2% lift since last year, or £73 in cash terms. 

Again, this was lower than the annual growth rate of 8.4% in the year to June, and increases in Scotland have also been slowing since the country saw a record-high annual rise of 11.8% in August last year. 

The ONS noted there were data collection limitations in Scotland and the rent prices mostly consisted of advertised new lets, which were not subject to rent controls. 

The average private rent across Northern Ireland, which is only available up to May, rose by 10% annually. This was down from a growth of 10.3% in the year to April and lower than the record-high annual rise of 10.4% in February. 

 

Stretched rental supply 

Industry figures said the lack of available rental homes compared to tenant demand was continuing to inflate rent prices. 

Nathan Emerson, CEO at Propertymark, said: “The rental market continues to feel the harsh reality of ongoing pressures on housing demand, which are outstripping current supply. This has a real-world effect on rental prices for consumers and that consequence is prices tend to be pushed further upwards.

“It is crucial the mismatch between supply and demand is addressed as a priority to help ease a current ‘nine applications per available property’ trend that we are witnessing. It’s an unhealthy situation and one that can only be solved by ensuring long-term investment in a diverse mix of sustainable housing to keep pace with growing demand.” 

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the “rental misery” was “piling on the pressure for another month, with rents up an eye-watering 8.7%”.

She added: “It’s not quite as bad as the record high back in March, of 9.2%, but that’s like consoling someone who has just broken a leg by telling them it’s not as bad as breaking two.

“Landlords continue to sell up in the face of higher mortgage costs, tougher tax rules and the likelihood of more stringent legislation. Meanwhile, growing tenant numbers make it harder to get hold of a property, even if you’re prepared to pay sky-high prices. It’s difficult to see how things will ever get any better.” 

Brian Byrnes, head of personal finance at Moneybox, said: “As a nation of aspiring homeowners, news that rental costs continue to rise is concerning. However, with a new government committed to supporting wealth generation across the country, perhaps there is a glimmer of hope for aspiring homeowners in the UK.

“Our industry must start to seriously consider the long-term effects of ever-increasing rental costs. We know how these are continuing to eat into renters’ disposable income and impact their ability to build a deposit for a future home.” 

 

Higher rent for detached homes 

Detached properties demanded the highest level of rent at £1,478. Flats and maisonettes were the lowest, at an average of £1,244. 

For properties with four or more bedrooms, the average private rent in July was £1,949, while one-bedroom properties attracted an average of £1,204.