The annual pace of rent increases across the United Kingdom has slowed to its lowest level in nearly four years.
Private rental costs increased by 3.5 per cent in the 12 months to January 2026, taking the average monthly rent to £1,367 across the country.
These latest figures from the Office for National Statistics (ONS) show a slowdown compared with the 4.0 per cent yearly increase recorded in December’s dataset, indicating easing pressure in parts of the rental market.
The annual growth rate is now the lowest recorded since March 2022, offering some relief for tenants following several years of sustained cost increases.
Rental inflation cools across most regions while house prices continue gradual growth
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Average monthly rents are now £46 higher than they were at the same point last year, reflecting continued upward movement despite the slower rate of increase.
Rental price growth varied significantly across the four UK nations, with Wales recording the fastest annual increase at 5.8 per cent.
Average monthly rents in Wales have now reached £826, according to the latest data.
Northern Ireland recorded the second highest annual rise at 5.6 per cent, taking average monthly rents to £875, although this data reflects the period up to November 2025.
England recorded rental growth matching the UK average at 3.5 per cent, bringing average rents to £1,423 per month.
The North East recorded the highest regional rent increase
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Lee Williams, national sales manager at Saffron for Intermediaries, said: “Encouragingly, earnings growth has outpaced house price inflation, helping affordability improve.
“As a result, the price-to-earnings ratio for first-time buyers has eased further, pointing to a meaningful shift in accessibility for many entering the market.”
Chris Storey, chief commercial officer at Atom Bank, said: “The starting gun has officially been fired for a potential spring mortgage price war.”
Nathan Emerson, chief executive at Propertymark, said: “Month on month, rent levels continue on an upward trajectory.”
He urged policymakers to create conditions that encourage long-term investment to help maintain sufficient rental housing supply.
The data is expected to be closely monitored by Government and industry groups as housing affordability, rental supply and mortgage competition remain central issues in the UK housing market.
The latest figures will feed into wider economic analysis as policymakers assess cost of living pressures and housing supply challenges across the country.
Policymakers have been urged to create conditions that encourage long-term investment
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Scotland recorded the lowest increase among the devolved nations, with rents rising by 2.6 per cent to reach an average of £1,021 per month.
The nation’s rental inflation has now fallen to its lowest level in more than four years, following a peak of 11.7 per cent recorded in August 2023.
Regional differences inside England remain pronounced, highlighting continued variation in housing pressures across different parts of the country.
The North East recorded the highest regional rent increase at 8.0 per cent annually, despite having the lowest average monthly rent at £767.
At the opposite end of the scale, London recorded the slowest increase at 1.1 per cent, down from 2.1 per cent in the previous reporting period.
