UK private rent inflation accelerated again in August 2026, with the average monthly rent reaching £1,400, up 3.8% on the previous year, according to ONS data published today.
The annual growth rate ticked up from 3.7% recorded in July 2026 and marks the highest rate of private rent inflation since December 2025.
London was the main driver of the acceleration, with the capital's annual inflation rate climbing to its highest point since October 2025. Strong monthly price growth between July and August 2026 pushed London back above other English regions that had been recording faster rises.
England recorded average monthly rents of £1,459 in August 2026, up 4.0% year-on-year. Wales saw rents rise 4.3% to £846, while Scotland posted the slowest growth of the three nations at 1.1%, with average rents reaching £1,013. In Northern Ireland, where data runs to June 2026, average rents stood at £874, up 1.6% on the year, the slowest rate of growth of any UK nation and lower than the 2.9% recorded in April 2026.
Within England, the North East and North West jointly posted the highest regional inflation at 5.8%, while the South East recorded the lowest at 3.0%.
The ONS figures also cover property size. Nationally, average rent was highest for detached properties and lowest for flats and maisonettes, with one-bedroom properties averaging the lowest cost by bedroom count and four-or-more-bedroom homes the highest.
Alex Upton, Managing Director, Specialist Mortgages & Bridging Finance, Hampshire Trust Bank, said: “Continued rental growth is masking some of the pressures landlords are dealing with at the moment. These figures follow HMRC data showing property rental income has reached a five-year high, which on the face of it should make the sector more attractive to quality investors.
"But the same data shows the costs associated with being a landlord have risen by 11% over the last year and by 56% over the last five years.
“Higher rents do not automatically mean stronger returns, and that is shaping the conversations we are having with landlords. Many are reassessing where they deploy capital and looking more closely at the role individual properties play within a wider portfolio. That is widening the gap between landlords who are actively professionalising and restructuring their portfolios, and those deciding the economics no longer justify remaining in the sector.
"For those continuing to invest, it is increasingly about owning the right properties rather than simply owning more of them. We are seeing particular interest in HMOs and other specialist property types where investors believe there is an opportunity to build more resilient income over the longer term.
“Build to rent is helping add much-needed stock in some parts of the market, but it cannot replace the breadth of supply provided by individual and professional landlords. We need a diverse rental sector if we are going to meet tenant demand. That means recognising that rental supply depends not just on tenant demand, but on whether landlords can see a sustainable return after costs.”
Nathan Emerson, CEO at Propertymark, comments: “Across the year, we have seen overall rental inflation generally slow down. However, that doesn’t take away from the reality of monthly rental costs continuing to rise year on year, albeit at a slower pace than previously.
“Based on today’s data, the average salary required for many people to rent a property typically sits at £42,000, which, in the current economic climate, represents a significant challenge for many. We remain in a situation where, on average, we are currently seeing around eight people register interest per available property across many letting agency branches, demonstrating a sizeable mismatch between supply and real-world demand.
“For many reasons, renting a property has become an ever-more-popular option across the UK, and it’s important that the sector attracts sustainable and continued investment to keep pace with growing demand.”
