The body looked at figures from the Office for National Statistics, which report that in the year to July 2025, average private rents increased by 5.9% across the UK, down from 8.6% in the year to July 2024.
The slower rent increases come amidst signs of a slight easing of pressures in the rental market. According to the property listings platforms Zoopla and Rightmove, there are now signs of a slight uptick in the supply of rental housing.
However, the National Residential Landlords Association (NRLA) is warning that 'recovery in the rental market remains fragile', with the demand for rental housing still outstripping supply. Data from the research consultancy Pegasus Insight has found that 71% of NRLA members continue to report strong tenant demand for their properties.
Landlord confidence is also extremely low, with just 2% of landlords reporting confidence in the UK economy ahead of the Autumn Budget - the joint lowest level ever recorded by Pegasus Insight.
The NRLA says the prospects for recovery in the rental market are now 'delicately poised', calling on the Government to use the forthcoming Budget to support long term investment in new decent quality rented housing and work closely with the sector to implement the Renters’ Rights Bill without disruption to the market. This must, it said, include a clear and realistic timeframe that allows for a smooth and seamless transition to the new tenancy system.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “Whilst a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state."
“Tenants across the country continue to face the reality of there not being enough homes to meet demand. Meanwhile, the sector is craving certainty about how the Government plans to implement the biggest overhaul of the market for almost 40 years.
“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent, and ensures the smooth implementation of the Renters’ Rights Bill.”
