Rental inflation slows despite rising rents

Rent prices are continuing to rise across the UK, but the pace of growth has slowed in most regions, according to new analysis from the National Residential Landlords Association (NRLA).

The NRLA’s rental prices: a deep dive into current trends blog post reveals that headline rental growth stands at 3.3%, while rental prices have increased by just 1.32% since January 2026, below wider inflation.

The news comes as the Office for National Statistics (ONS) revealed that average private rents across the UK rose by 3.3% to £1,388 a month in the year to June.

Rental price growth slows across most regions

According to the data, rental prices have risen by 1.32% in England and 1.26% in Wales since January 2026, both below the 2.08% increase in the wider Consumer Prices Index (CPI).

The final quarter of 2025 saw a smaller increase in rents than the previous quarter, and while rental price growth picked up again in the first quarter of 2026, the increase was not uniform across the country.

The analysis shows that rental price increases fell across every English region in the second period compared with the first, with London the only notable exception.

The NRLA says structural changes in the rental market, alongside the impact of legislation, may now be driving faster rent increases in the capital.

Rental price growth accelerating in London

The NRLA writes on its website: “The data clearly shows rental price growth increasing at a national (be that UK, England or Wales) level in the first quarter of this year. It would be easy to look at the data and assume rental change is a consequence of wider economic price change, and the unusual factors which came into play at the start of 2026.

“However, were macro-factors (such as the effects of military action) the driver of price increases in any given sector a main cause, then one could anticipate at least some uniformity in increase across the country.

“The analysis shows that, across every English region (including Yorks & The Humber – where rounding masks a slight reduction), rental price increases fell in the second period compared to the first. This does not mean price reductions, but slower price rises.

“The sole, and very notable, exception to this pattern of regional softening of prices is London.

“In the capital, rental price growth is accelerating,  and doing so at a rate above inflation: In 2025 Qtr4 London was the only region in which rental price growth was less than CPI inflation. In the very next quarter, however, rental price growth in the capital leapt.”