Britain’s rental market remains under significant pressure despite official figures showing rent inflation has levelled off, according to new July 2026 analysis from LandlordBuyer.
Average UK private rents reached £1,388 per month in the 12 months to June 2026, Office for National Statistics (ONS) data shows.
Private rents increased by 3.3% year-on-year, with growth continuing across England, Wales, Scotland and Northern Ireland. The annual growth rate remained unchanged from May, with rents reaching £1,446 in England, £843 in Wales, £1,012 in Scotland and £877 in Northern Ireland.
At the same time, separate ONS earnings data shows private sector pay growth slowed to 2.9%, the weakest annual increase since 2020. That gap suggests many households could continue to feel the pressure as housing costs rise faster than earnings.
LandlordBuyer believes the two datasets together paint a clearer picture of the challenges facing renters than either statistic in isolation.
“The headlines naturally focus on rent inflation stabilising, and that’s welcome news,” said Jason Harris-Cohen, managing director of LandlordBuyer. “However, when wage growth is slowing at the same time, affordability doesn’t suddenly improve. Many tenants are still finding that housing takes up a significant proportion of their monthly income.”
“The other side of the equation is supply,” he continued. “While demand for rental homes remains incredibly strong, we’re continuing to speak to landlords who feel now is the right time to leave the sector. That creates ongoing pressure on the number of homes available to rent.”
Earlier this year, LandlordBuyer research found that 57% of landlords selling investment properties planned to leave the private rented sector altogether, rather than reinvesting in another buy-to-let property.
The company says this trend has the potential to prolong supply shortages if exiting landlords are not replaced by new investors entering the market.
Regional disparities in the rental market persist even as annual growth holds steady. Recent ONS figures show:
Rent inflation was highest in the North East of England at 6.3%
London recorded the lowest annual increase at 2.2%
Average UK house prices rose 2.7% in the year to May 2026, taking the average property value to £271,000
