Data from the Office for National Statistics (ONS) found this came to an average of £1,307 per month, £105 higher than in 2023.
The growth in October was sharper than the 8.4% increase recorded in the year to September, but lower than the record-high 9.2% jump seen in March this year.
Sharp growth in England and Northern Ireland
In England, the average private rent was £1,348 in October, up 8.8% or £109 from the year before.
This was higher than the annual rise of 8.5% recorded in the year to September, and lower than the recent record high of 9.1% seen in March.
The average monthly rent in Wales came to £766 per month, a 7.9% or £56 increase on 2023.
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The growth rate was lower than in September, when it rose 8.3% annually. The ONS said the pace of private rent inflation in Wales had been slowing since a record increase of 9.8% was recorded in November 2023.
The average rent for Scotland was £976, up 6.6% or £60 annually. This was lower than the rise of 7.2% seen in September, and private rent growth has been slowing since the record yearly rise of 11.8% in August last year, the ONS said.
Data for Northern Ireland is only available up to August, and the ONS figures showed there was a 9% annual uplift in the month. This was lower than the 9.5% rise recorded in the year to July and below the record-high annual rise of 10.4% seen in January this year.
Detached properties attracted the highest average rent in October at £1,505 per month, while flats and maisonettes were the lowest at £1,274.
Average private rent was higher for properties with four or more bedrooms, coming to £1,984 in October, while properties with one bedroom were the lowest at £1,049.
Lack of supply pushing rents up
Industry commentators said the constrained rental housing supply was keeping rents inflated.
Nathan Emerson, CEO of Propertymark, said: “As we continue to see a further increase in rental prices across the UK, our members continue to emphasise key concerns regarding the ongoing trend of lack of rental stock versus an ever-growing number of tenants looking for homes.
“Selling up altogether or turning to the short-term letting market is becoming a more attractive option for landlords due to the challenging legislative changes and increased financial liabilities they face.”
Alex Upton, managing director for specialist mortgages and bridging at Hampshire Trust Bank (HTB), added: “Rents have risen substantially over the past year, and the latest Office for National Statistics data confirms it. Demand for rental properties continues to outstrip supply, and we’re likely to see this trend drive rents even higher in the coming months. Propertymark’s figures show there are around 10 prospective tenants for every rental property available through the average letting agent. Unless there’s a meaningful increase in supply – which isn’t on the horizon – this competition will keep pushing rents up.
“The uncertainty around the Budget made some investors pause, waiting to see if any tax changes would impact their plans. Now that the Government’s intentions are clear, and with the Bank of England’s recent base rate cut, investors have the clarity they need to pick up those paused deals. I expect we’ll see a renewed push in buy-to-let activity as landlords look to meet the strong demand in the rental market.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Average private rents in the UK up 8.7% annually – ONS
