In England, average rents increased to £1,362 (an increase of 9.3%), £772 (8.0%) in Wales, and £980 (6.5%) in Scotland, in the 12 months to November 2024, and in Northern Ireland, average rents increased by 9.0% in the 12 months to September 2024 - the most recent month for which data is available.
In England, rents inflation was highest in London (11.6%) and lowest in Yorkshire and The Humber (5.7%), in the 12 months to November 2024.
Looking at average house prices also showed growth: the average UK house price increased by 3.4%, to a provisional estimate of £292,000, in the 12 months to October 2024 - this annual growth rate is up from 2.8% in the 12 months to September 2024.
Growth of average house prices was driven by the larger increases in Scotland (5.5%) and Wales (4.0%) compared to England's 3.0%.
Nathan Emerson, CEO at Propertymark, said:
“The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate. It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next ten years.
"It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep a objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand."
Gareth Atkins, managing director of lettings at Foxtons, said:
“Rental demand was steady and persistent in 2024, even as the number of listings increased – reaching 7% higher than 2023 (year to date) by the end of November. So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per each new listing year to date. As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”
Alex Upton, managing director of specialist mortgages & bridging at Hampshire Trust Bank, said:
“The rental market remains under intense pressure, with demand significantly outpacing supply. Recent figures from Pegasus Insights show that eight in ten landlords reported strong tenant demand in Q3, and Propertymark’s data highlights an average of nine prospective tenants competing for each available property. Without a notable increase in supply - and that doesn’t appear imminent - this imbalance will continue driving rents higher. I fully expect to see new rental records set in 2025.
“Despite the Stamp Duty changes announced in the Budget, property investment still makes a great deal of sense, particularly for those focusing on refurbishment or conversion projects. These strategies not only help maximise rental yields but also make better use of existing housing stock to meet the strong demand for quality homes. With limited progress on new builds, unlocking the potential of existing properties will be key to meeting tenant needs in the year ahead.”
