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Rents are rising, but at a slower rate than recent months despite outpacing inflation, according to new data from the Office for National Statistics (ONS).
UK average rents were up 7.7 per cent in the year to March 2025, with tenants paying £1,132 a month, down from an 8.1 per cent increase in the year to February 2025 and below the record-high of 9.1 per cent in March 2024.
Average rents rose to £1,386 (7.8 per cent) in England and £792 (8.9 per cent) in Wales in the 12 months to March 2025.
UK inflation was 2.6 per cent in March, says the Bank of England.
In England, private rent annual inflation was highest in the North East (9.4 per cent) and lowest in Yorkshire and the Humber (4.6 per cent), in the year to March 2025.
London was ousted as the English region with the highest private rent inflation rate for the first time since April 2023. This time, the honour went to the North East, where rents increased by 9.4 per cent from 12 months to March 2025.
The increase was higher than in the 12 months to February 2025 (8.7 per cent) and is a new record-high annual growth rate for the North East. Annual rent inflation rates rose in five of the 12 local authorities within the North East region.
The lowest rent rise was in Yorkshire and the Humber, at 4.6 per cent from 12 months to March 2025. This annual rise was lower than in the 12 months to February 2025 (4.8 per cent) and marks the ninth month of slowing yearly inflation.
London's annual rent inflation rate eased to 9.1 per cent in the 12 months to March 2025, down from 9.9 per cent a month earlier, because London rents rose more slowly between February 2025 and March 2025 than in the same period a year earlier.
UK average rents were highest in London (£2,243) and lowest in the North East (£725) in March 2025.
Average rent was highest in Kensington and Chelsea, London (£3,639) and lowest in Dumfries and Galloway, Scotland (£528), in March 2025. Excluding London, the local area with the highest average rent in March 2025 was Elmbridge, South East England (£1,893).
The average UK monthly private rent in March 2025 was highest for detached properties (£1,522) and lowest for flats and maisonettes (£1,306). Average private rent was highest for properties with four or more bedrooms (£1,996) and lowest for properties with one bedroom (£1,079).