The average UK monthly private rent rose to £1,332 in the 12 months to March, but in London tenants are paying on average £2,243, the highest in the country.

Figures released by the Office for National Statistics (ONS) showed monthly rents in the private sector rose 7.7% to £1,332 over the 12-month period. This marks a modest slowdown from February’s annual growth rate of 8.1% and a further retreat from the 9.2% peak recorded in November.

London remained the most expensive region for renters, with monthly rents reaching £2,243 —the highest in the UK. At the opposite end of the scale, the North East recorded the lowest average rent, at £725. The disparity was even more pronounced at the local authority level: in March, tenants in Kensington and Chelsea paid an average of £3,639 per month, while those in Dumfries and Galloway paid just £528.

England saw average rents rise to £1,386 in March, a 7.8% annual increase — or £101 more than the previous year. Though still high, this marks a slowdown from the 8.3% rise in February.

Regional differences were stark. The North East posted the fastest rental growth in England, with a 9.4% year-on-year increase, while Yorkshire and the Humber saw the slowest growth at 4.6%.

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In Wales, average rents climbed 8.9% to £792 — surpassing the 8.5% growth rate of the previous period but below the 9.9% high of November 2023. Scotland’s rental growth was more subdued, rising 5.7% to an average of £1,001. Northern Ireland recorded an 8.2% increase in January, bringing average rents to £838, slightly higher than the 8.1% rise in December 2024 but below the 9.9% peak in April last year.

Outside the capital, the highest local average rent in March was in Elmbridge, South East England, at £1,893.

Alex Upton, managing director of specialist mortgages at Hampshire Trust Bank, said: “The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property.

“While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise.”

Rents also varied significantly by property type and size. Detached homes attracted the highest average monthly rent at £1,522, while flats and maisonettes were the most affordable, at £1,306. Properties with four or more bedrooms commanded the highest rents overall at £1,996, compared with £1,079 for one-bedroom homes.

Tom Bill, the head of UK residential research at Knight Frank, said: “Upwards pressure on rents is likely to intensify as landlords leave the sector due to tougher green regulations, higher mortgage costs and the impact of the Renters' Rights Bill, which makes it harder to regain possession of a property.

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“Nobody would argue against protecting tenants from unscrupulous landlords, but the new legislation could be a lesson in the laws of unintended consequences.”

The persistent rise in rental prices compounds tenants' affordability pressures as house prices continue to climb in parallel.

The average UK house price increased by 5.4% in the year to February, with the annual growth rate rising from 4.8% in the year to January.

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Karen Noye, mortgage expert at Quilter, said: “First-time buyers paid an average of £227,000 last month, up 5.6% annually, while former owner-occupiers paid just under £330,000. That widening gap reinforces the affordability challenge facing those trying to step onto the ladder.

"Meanwhile, the sharp 28.7% annual surge in new build prices, compared to just 3.2% for existing homes, risks compounding that issue, particularly if developers focus on premium stock that pushes buyers towards increasingly stretched borrowing.

“Still, activity is picking up, with residential transactions up 28% year-on-year. Lenders are starting to respond, with mortgage rates edging down as financial markets anticipate further interest rate cuts."

Average house prices increased to £292,000 in England (5.3% annual growth rate), £207,000 in Wales (4.1%), and £186,000 in Scotland (5.7%) over the 12 months to February.

Separate data from estate agent Foxtons revealed that March saw a 14% increase in new rental listings across London compared to February.

Applicant registrations rose by 11% month-on-month in March. Year on year, demand was stable, tracking just 2% below March 2024 levels The average rent in March stood at £565 per week, reflecting a 2% increase year on year.

Gareth Atkins, managing director of Lettings, said: "The London lettings market is gaining momentum as we enter April, with March delivering a 14% surge in new listings – the largest uplift so far this year. Simultaneously, applicant registrations climbed 11%, reflecting strong seasonal interest and sustained confidence among renters.

"With more choice coming to the market, renters are well-positioned this spring. At the same time, the steady flow of listings is helping to keep conditions balanced across much of the capital, creating a more stable and competitive environment for everyone navigating the market.”

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