Private rent increases halve but regional pressures remain

17 Jun 2026 03:34 PM

Official data shows that the rate of increase in private rents has more than halved over the past year, but regional pressures remain with tenant demand highest in the North East.

According to the Office for National Statistics (ONS), average monthly private rents across the UK increased by 3.3 per cent in the 12 months to May this year. This was the first month that key provisions of the Renters’ Rights Act came into force.

The rate of increase is down from the 7 per cent increase seen in the year to May 2025.

It comes as analysis from the lettings platform, Zoopla, has shown that the gap between demand and supply in the rental market is shrinking nationally, with an average of just under six enquires per rental property, down from a peak of over 15 in 2022. However, it warns that whilst demand has softened, there remains a gap between demand and the number of available properties, with new investment in private rented housing remaining low.

The ONS figures also demonstrate a changing regional picture, with the rates of rent increases ranging from 2 per cent in London through to 5.9 per cent in the North East of England.

This underlines recent research for the NRLA suggesting that demand for rental is now by far the strongest in the North East.

Research published earlier this week by Hamptons suggests that the number of tenants who saw their rent increase in May this year was down 23 per cent compared to the same point last year.

Responding to the data, Chris Norris, Chief Policy Officer for the National Residential Landlords Association, yesterday said:

“Today’s data continues to point to a national rental market under less pressure, with the gap between demand and supply continuing to narrow.

“However, the national picture masks considerable regional variation. Tenants in the North East continue to face some of the biggest gaps between the homes they need and what is available to rent.

“The private rented sector has proved resilient in the face of strong headwinds of change, but the fact remains that we still need more rental homes alongside all other types of housing.

“Policy needs to reflect this, beginning with scrapping next year’s planned tax hike on rental income, the cost of which will ultimately be borne by tenants.”

Notes:

• The latest data from the Office for National Statistics on rent levels in the 12 months to May 2026 can be accessed here. The equivalent data for the 12 months to May 2025 can be accessed here.
• According to Zoopla, there were an average of 5.6 enquiries per rental home in May 2026, down from a peak of 15.5 in 2022. However, it notes that “competition for homes remains well above 2017-19 levels and explains why rents are still largely rising.” It goes on to note: “Falling demand has not reduced rents because the number of homes available to rent remains below pre-pandemic levels across every region. New investment in private rented homes remains low.” Zoopla’s latest analysis can be accessed here.
• Pegasus Insight undertook 631 online interviews with current members of the National Residential Landlords Association between 9th March and 3rd April 2026. It found that demand for private rented housing was highest in Wales and the North East where 74 per cent of landlords reported strong demand.
• Following decisions made in last Autumn’s Budget, income tax rates on rental income will increase by two percentage points from April next year.