The Office for National Statistics says private rents in England experienced a 6.1 per cent rise in 2023, the sharpest annual increase on record.

Wales saw the highest annual rent increase in Britain at 7.1 per cent with Scotland on 6.2%. London rents escalated by 6.8 per cent last year. 

Tom Bill, head of UK residential research at Knight Frank, says: “Low supply continues to cause financial pain for tenants as it keeps strong upwards pressure on rents. Landlords have been disincentivised by tax and legislative changes in recent years and there is no sign of that changing, particularly as the general election campaign gets underway this year. 

“Political interference has had the unintended consequence of making life tougher for tenants although we expect UK rental value growth to calm down marginally to 5.0 per cent this year as more demand is absorbed.”

And Jeremy Leaf, north London estate agent and a former RICS residential chairman, adds: “For aspiring first-time buyers the sad news is that average rents are still rising, making deposit saving even more difficult, and it’s also making life harder for longer-term tenants too.

“The usual suspects are at work here – shortage of stock, partly caused by landlords leaving the sector in response to worries over the tax and regulatory regime, while at the same time demand seems unstoppable.

“However, in the early weeks of 2024, we have noticed an increase in supply which has helped to keep a lid on some of the more ambitious rents and the gap with demand is narrowing.”