Private rental prices paid by tenants in the UK rose by 5.5% in the 12 months to August 2023, up from 5.3% in the 12 months to July 2023. 

In response, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “These more timely rental figures reflect what we’ve been seeing on the ground - that shortage of stock is continuing the upwards pressure on rents at a time when students are adding to tenant numbers. 

“The burden of higher mortgage rates as well as tax and regulatory issues are persuading landlords to quit the sector which is not helping keep rents in affordable territory. However, we have noticed the difference between the rents charged on new tenancies and those who are renewing existing arrangements as tenants are reaching an affordability ceiling. Landlords recognise the importance of reliable, long-term tenants rather than maximising their returns unless, of course, their costs are getting out of hand.” 

Anna Clare Harper, CEO of sustainable investment adviser GreenResi, added: “This increase in private rents is no surprise in the context of public policy. For some years, housing policy has focused on the needs of homeowners, on debt to fund new supply, and on increasingly stringent regulations designed to make the private rental sector more professional.”