The average private rent in the UK increased by 9% in the 12 months to December, a slight fall on November numbers.
According to the latest figures from the Office for National Statistics (ONS), this compares to 9.1% in the 12 months to November 2024, but is a rise from the 8.3% reported in December 2023.
Overall in Great Britain, the average private rent is £1,327 per month, which is around £110 higher than 12 months previously.
The report found that the average rent in England grew to £1,369, a rise of 9.2% or £115 year-on-year.
Looking at Wales, the average rent came to £777, an increase of £61 or 8.5% annually.
Scotland reported an annual rent increase of 6.9%, with average rent per month coming to £991.
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In Northern Ireland, average rents rose by 8.6% in the 12 months to October 2024.
From a regional perspective in England, rent inflation was highest in London at 11.5%, which is slightly lower than the record high of 11.6% seen in November.
Rent inflation was lowest in Yorkshire and the Humber, at 5.4%. This is lower than the 5.7% reported in November.
The average rent was highest in London, at £2,220, and lowest in the North East, at £706, in December 2024.
The ONS found that the average rent was highest in Kensington and Chelsea, London, at £3,588 and lowest in Dumfries and Galloway, Scotland, at £499.
Excluding London, the local area with the highest average rent in December 2024 was Elmbridge in the South East at £1,867.
Looking at specific property types, the average rent was highest for detached properties, at £1,523, and lowest for flats and maisonettes, at £1,296, in December 2024.
The report added that the average private rent was highest for properties with four or more bedrooms, estimated at £2,013, and lowest for properties with one bedroom, at £1,067.
Rent increases show market is ‘out of balance’
Alex Upton, managing director for specialist mortgages and bridging finance at Hampshire Trust Bank (HTB), said rents were “climbing fast” and that there was “no sign of this slowing”.
She said that the latest figures from the ONS were “yet another reminder of just how out of balance the rental market is”.
“Rightmove’s recent figures show that enquiries per rental listing are almost double what they were before the pandemic, while Propertymark’s Housing Insight Report highlights that letting agents now juggle around seven prospective tenants for every available property. With this ongoing disparity, 2025 looks set to be a record-breaking year for rents.
“For property investors, this surge in rental prices offers a real opportunity. Even with the higher stamp duty rates, focusing on projects that maximise rental yields, such as refurbishment or conversion schemes, could deliver significant returns. For lenders, staying flexible and offering tailored solutions will be key to supporting landlords with these more complex cases,” Upton added.
She noted that a “strong and stable rental market has never been more essential”, but landlords will “need the right support to deliver for tenants”.
Nathan Emerson, CEO of Propertymark, agreed that the lettings market has been an “extremely challenging prospect for many” in the last year, pointing to the average cost of rent rising by over a £100 for many.
“At the same time, we continue to witness an enormous mismatch between supply and demand of rental properties, with an average of seven people chasing each potential property advertised.
“The UK government needs to concentrate on supporting both tenants and landlords by boosting the supply of new rental homes as it proceeds with the Renters’ Rights Bill. There must be a fair and workable balance for all involved, and one that encourages long-term investment in the rental sector as the population quickly approaches 70 million people, up from 65 million [in] only 10 years,” he said.
The Renters’ Rights Bill passed through to the House of Lords earlier today.
