Average UK private rents reached £1,377 per month in March 2026, a 3.4% increase on the previous year, according to the ONS. That annual growth rate is the lowest since March 2022, down from a peak of 9.2% in early 2024. Rents are still rising, but the pace has slowed.
Regional rents and growth
| Region | Average rent (March 2026) | Annual change |
|---|---|---|
| London | £2,280 | +1.7% |
| South East | ~£1,400 | +2.8% |
| South West | ~£1,150 | +3.1% |
| East of England | ~£1,250 | +2.9% |
| West Midlands | ~£950 | +4.2% |
| East Midlands | ~£850 | +4.5% |
| North West | ~£900 | +5.0% |
| Yorkshire and the Humber | ~£830 | +5.4% |
| North East | £772 | +6.5% |
| Wales | £830 | +4.8% |
| Scotland | £1,022 | +2.1% |
Source: ONS PIPR data. Estimates rounded where exact local authority figures are aggregated.
The pattern: the cheapest regions are seeing the fastest rental growth. The North East grew at 6.5%, more than three times London's 1.7%. London rents are the highest in absolute terms but the slowest-growing, down from a peak of 11.5% annual growth in November 2024.
Why rents are still rising
Landlord exits. The combination of Section 24 tax restrictions, the 5% SDLT surcharge, the Renters' Rights Act, and upcoming EPC and Decent Homes Standard requirements has pushed some landlords to sell. Fewer rental properties on the market means less supply.
Population growth and household formation. The UK population continues to grow through natural increase and net migration. More households form each year than new homes are built, maintaining upward pressure on both house prices and rents.
Affordability barriers to homeownership. With the average UK house price at 8 to 9 times average earnings, many households cannot access homeownership and remain in the private rented sector for longer.
Why growth is slowing
Tenant affordability ceiling. Rents cannot grow faster than wages indefinitely. At some point, tenants cannot pay more. The slowdown in growth reflects tenants reaching the upper limit of what they can afford, particularly in London where rents already consume a large share of income.
New supply from build-to-rent. The BTR sector is adding institutional-quality rental stock, particularly in city centres. While BTR rents tend to sit at the premium end, the additional supply reduces pressure in those segments.
London correction. London rents grew by double digits in 2023 and 2024. The current 1.7% growth is a normalization after an unsustainable spike.
What this means for investors
Rental growth in the 3% to 6% range is healthy for landlords. It supports income growth, improves refinancing valuations, and maintains positive cash flow on leveraged properties.
The strongest rental markets for investors are in the North East, Yorkshire, the North West, and the East Midlands. These regions offer a combination of high yields (gross 6% to 8%), above-average rental growth, and affordable entry prices.
London remains a poor entry point for new BTL investors in 2026. Yields are low (3% to 4% gross), prices are falling, and rental growth has flattened.
Sources
- ONS, "Private rent and house prices, UK: April 2026". https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/april2026 [Accessed 6 May 2026]