Growth in private rents continues to fall with even think tanks like the Resolution Foundation accepting there’s a slowdown.
Latest government data shows private rents rising by 6.7% in the year to June 2025, down from 7% seen in the year to May.
But the foundation says rents have still grown far faster than wages over the past three years and created what it calls “an affordability wedge” for renters as a result.
Across the UK, all regions saw a slowdown or stagnation in rental price growth.
The North East had the largest annual rent rise of 9.7% in the year to June 2025, unchanged in the year to May. Yorkshire and the Humber saw the smallest increase of 3.5%, while in London growth fell from 7.7 to 7.3%.
Further easing is likely, says the foundation, with rent growth for new tenancies falling to 0.7% in June.
But it claims that since May 2022 nominal wages have risen by 18.6% while private rents have grown by 24.2%. Had rent rises instead grown in line with wages, average rents would be £720 a year lower, the foundation claims.
It adds that private rents are particularly bad news for younger households, with around one-in-four households aged 19-29 and 30-49 now renting privately.
Meanwhile the share of families aged 50-64 renting privately has more than doubled since 2000, from 5 to 12%.
The foundation claims: “With these households unlikely to find their way onto the property ladder before retirement, this uptick in older private renters is something the Government should take note of, not least as it will drive up the housing benefit bill.”
Finally, it suggests this rise in rental prices will also have consequences for the nearly one-in-four families with children (23%) who live in the private rented sector.
A spokesperson says: “The continuing slowdown in rent price growth offers a glimmer of hope for the UK’s growing number of private renters who have had a torrid few years when it comes to housing costs.
“Rent rises have consistently outpaced earnings over the past three years, creating a £720 housing affordability wedge and adding to households’ cost of living pressures.
“Younger people and children in the private rented sector will be particularly hard hit by rising rental costs, but an increasing number of older households are finding themselves exposed to high rents, which could have long-term effects on the housing benefit bill.”
This article is taken from Landlord Today