Data from the Office for National Statistics (ONS) revealed that the steepest rise in average rents was seen in Wales, where an 8.5% growth was recorded, and the typical rent was £785.
This was followed by England, with an 8.3% growth rate to £1,381 – again lower than the 8.8% inflation seen the month before.
In Scotland, rents increased by 5.8% year-on-year to an average of £998 per month.
The ONS’ data showed that in December – its most recent data for Northern Ireland – average rents were 8.1% higher than the last year at £832 per month.
London had the highest rental inflation in England at 9.9% to £2,235, a lower rise than the 11% change in the year to January 2025. The city also had the highest average private rent.
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Yorkshire and the Humber saw the lowest growth at 4.8% in the 12 months to February 2025, averaging £813 per month.
Average private rent in the North East was the lowest at £715 per month.
Renters’ Rights Bill could inflate rental prices
Noting a fall in the growth rate of average rents, it was suggested that the proposals in the Renters’ Rights Bill could see landlords leave the sector, reduce supply and cause rents to increase.
Alex Upton, managing director for specialist mortgages and bridging at Hampshire Trust Bank (HTB), said: “Rising rents have become a reality for tenants, driven by a fundamental shortage of rental homes. However, there are signs of change. Zoopla’s latest rental market report shows the number of renters competing for each available property has dropped to 12. It’s still high, but an improvement on recent years. This easing in demand may be contributing to a slowdown in rental growth, with Zoopla reporting the lowest level of increases in over three years.
“The elephant in the room is the Renters’ Rights Bill. While the legislation is designed to improve standards, which we fully support, there are concerns that it may reduce rental stock, at least in the short term. That could put upward pressure on rents again.”
She added, however, that “change also brings opportunity”.
Upton said: “Professional landlords with a long-term mindset are already adapting, shifting their focus to properties that maximise rental yields. Brokers and lenders will need to do the same to support these evolving strategies. If they do, the real winners will be tenants, benefitting from a broader selection of high-quality rental homes in the future.”
Nathan Emerson, CEO of Propertymark, added: “With there being a decreased focus on the supply of new rental properties in the UK government’s Renters’ Rights Bill, it sadly comes as little surprise that rents continue to increase. However, there are reasons to believe that they have not increased at the rate they have done in previous years. For example, recent data has found that annual rent inflation for new lets is running at its lowest level for 3.5 years.
“Propertymark recognises that the UK government’s aim is to safeguard renters and give them greater security. However, an unintended consequence of continued legislation placed on landlords is a real concern echoed across the industry, as overly prohibitive regulations will likely contribute to a reduced supply of rental homes, an increase in rent prices, and make it harder for people to find affordable housing.”
