Data from the Office for National Statistics (ONS) revealed this annual growth was slower than the 5% rise seen in the year to October. The ONS said this was also the lowest rate of annual growth since June 2022.
Rents rose by the most in Wales, where there was a 6.1% rise to an average of £820.
In England, average rents rose 4.4% to £1,422, while in Scotland, there was a 3.3% increase to £1,012.
The data is recorded up to September for Northern Ireland, and the ONS figures showed average private rents in the country were 6.4% higher at £871 per month.
All nations recorded a slowing-down in the annual rate of growth.
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In England, the North East continued to have the highest rent annual inflation at 8.4%, with an average monthly rent of £759. This was still lower than the previous rise of 8.9% recorded in October.
London had the lowest rate of rent growth, with a 2.8% year-on-year rise to £2,271. This was down from the 4.3% growth recorded in the year to October.
The ONS said London’s annual inflation had slowed the most since its peak, falling 8.7 percentage points from 11.5% last year.
The impact of rental policy
Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank (HTB), said: “While the pace of rental growth has slowed, 2025 still delivered significant increases, underlining how stretched the private rental sector remains. That pressure is not easing. The recent Budget has added to it, with the government’s own figures showing 2.4 million landlords will face higher taxes by the end of this Parliament. For some, that could be the point they call time on their portfolios.
“Regulatory change continues to build. From energy standards to tenancy reform, landlords are being asked to adapt at speed, often without clarity. The Renters’ Rights Act will be another major shift in how property is owned and managed, and we are already seeing investors respond.”
She added: “There is a clear move towards more complex asset types such as houses in multiple occupation (HMOs), semi-commercial units and mixed-use portfolios. That shift is not just about chasing yield. For many, it is about finding a way to stay in a sector that is getting harder to navigate. Brokers are seeing it play out on the ground every day.
“Improving standards is the right ambition, but there is a line between raising the bar and pulling the rug. If pressure continues to build without recognition of the consequences, we risk weakening the very market people rely on. That is not a policy warning. It is already happening.”
